The price of Tether is determined by its peg to the US dollar. Tether operates as a stablecoin aiming to maintain a value of approximately $1. Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014. It is owned by the Hong Kong-based company iFinex Inc. Each token backed by an equivalent number of US dollars held in reserve. This backing ensures stability and allows users to exchange Tether for US dollars at a 1:1 ratio. Market dynamics and demand can cause minor fluctuations, but the Tether Treasury’s commitment to the peg serves as the primary mechanism for establishing and stabilising the price of Tether.