USDT vs USD1
Tether (USDT) and World Liberty Financial USD (USD1) are both dollar stablecoins, but they are built very differently. Here is how they compare on live data and on what actually matters for safety.
| Tether (USDT) | World Liberty Financial USD (USD1) | |
|---|---|---|
| Issuer | Tether | World Liberty Financial |
| Type | Fiat-backed | Fiat-backed |
| Backing | Reserves held by Tether, mostly short-term US Treasury bills | Short-term Treasuries, dollar deposits and cash equivalents held by BitGo |
| Launched | October 2014 | March 2025 |
| Market cap | $184.17B | $4.44B |
| Price | $1.0000 | $0.9997 |
| Distance from $1 | 0.00% | -0.03% |
| Chains | 130 | 8 |
| Worst recorded depeg | $0.9250 (Oct 2018) | None significant |
| Lost to inflation | −29% | −4% |
| Regulation | Not authorized under the EU's MiCA; a separate US token (USA₮) is issued under the GENIUS Act | Reserves held by a regulated US custodian (BitGo) |
The key difference
USDT is more than a decade old and the market's default dollar; USD1 is a 2025 newcomer whose growth came from large deals and its political profile. USD1's reserves are held by a US custodian, BitGo; USDT's by Tether, attested quarterly. USD1 does not yet have a long track record through market crises.
Bottom line
Neither is risk-free. The better choice depends on which risk you would rather carry — issuer and reserve risk, smart-contract and collateral risk, or derivatives risk — and both still lose value to dollar inflation. This comparison is informational, not financial advice.
Stablecoins copy the dollar — inflation included. Unstablecoins take the opposite bet: no peg, a fixed or shrinking supply and volatility on the label. See them in the live unstablecoin rankings.
Market data: DefiLlama (hourly). Inflation: US CPI-U from FRED. This page is informational and not financial advice.