> For stablecoins like USDT, the company behind the protocol is responsible for holding reserves that fully back each token. The company behind Tether, Tether Limited, claims to hold reserves that fully back each USDT. As of 2021, USDT is the most widely-used stablecoin in the world, with a market cap over $30 billion.
> For stablecoins like USDT, the company behind the protocol is responsible for holding reserves that fully back each token.<p>I don’t think full backing is technically required for a stablecoin. OTOH, such a promise, if believed, helps a stablecoin stay stable, and having made the promise it becomes the firms obligation.