The Tether Corporation balances the supply of digital tokens (USDT) and fiat currency reserves (US dollar) to sustain the peg. Every time someone deposits a dollar with the Tether Corporation a new USDT token is minted and put into circulation. Every time a user redeems a USDT by handing it back to the corporation, a dollar is returned to the user and the digital token is eliminated. This maintains the 1-to-1 peg and keeps the market value of USDT stable.