What is USDT?

USDT is Tether’s US dollar stablecoin, a digital token built to always be worth one US dollar. Tether backs it with reserves, mostly short-dated US Treasuries, and publishes a reserve report every quarter. It’s been around since 2014 and is the largest stablecoin, with US$182.5 billion on issue as of October 2026. It runs on blockchains such as Tron, Ethereum and Solana, so it can be sent anywhere in the world, 24/7, and settles in minutes.

Put simply, it’s a US dollar that moves on crypto rails instead of through the banking system.

How do businesses use it for payments?

The main reason businesses use USDT is to get around the friction of traditional cross-border payments. A standard USD wire goes through correspondent banks, only moves during banking hours and can take a day or two to arrive, with fees deducted along the way. USDT arrives in minutes, including weekends and public holidays, and the network fee is usually small no matter how large the payment.

In practice, businesses use it to:

• Pay overseas suppliers, particularly in markets where getting US dollars through local banks is slow, expensive or restricted
• Settle outside banking hours, so a payment due late on a Friday doesn’t sit until Monday
• Move liquidity between exchanges, OTC desks and payment providers without waiting on bank cut-offs

A typical flow goes like this. The business converts AUD to USDT through a licensed provider and sends it to the recipient’s wallet. The recipient then converts it into their own currency. The transfer itself costs very little, so the real cost is in the FX conversion at each end, and that’s where choosing the right provider matters.

As with any payment rail, it needs to be used carefully. Work with regulated counterparties, keep holding periods short, and always double-check the wallet address and network before sending, because mistakes usually can’t be undone.

How Bolt Group can help

Bolt Business Account brings virtual accounts, FX and cards together in one place, with USDT working alongside traditional currencies. Through Mastercard Global Money Platform, Mastercard handles the conversion between stablecoins and US dollars, so your business can pay and get paid in USDT without dealing with blockchain transactions itself. It’s available now by enquiry.