Tether tokens are built on various blockchains and are pegged at a 1:1 to real-life fiat currencies. That is, 1 USDT token is equivalent to 1 USD. Every Tether minted is backed by a USD reserve. And each Tether returned to the parent company for fiat remittances is destroyed before its fiat equivalent is released. Tether Tokens are also compatible with smart contract protocols of the ETH blockchain and other USDT compatible smart contract supportive blockchains.