Tether is the world’s most valuable stablecoin.
It has the highest liquidity and global adoption rates.
It’s a good choice for investors who want to hold U.S. dollars without a bank account.
Over the past few years, stablecoins have gained momentum as an alternative to traditional cryptocurrencies. Unlike those volatile tokens, which are challenging to value beyond their near-term demand, most of the top stablecoins are pegged to the U.S. dollar.
It might seem counterintuitive to invest in a token that tries to keep its value at $1.00. Still, these coins can be held without a bank account, used for faster, cheaper cross-border money transfers, and staked on centralized finance (CeFi) exchanges and decentralized finance (DeFi) pools to earn yields much higher than those of traditional savings accounts.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Getty Images.
One of the best stablecoins to buy is Tether (CRYPTO: USDT), launched in 2014 and now the world's top stablecoin with a market cap of $185 billion. Tether Limited, a subsidiary of Hong Kong-based iFinex (which also owns the Bitfinex cryptocurrency exchange), is the only company that mints Tether tokens. It uses a mix of cash, commercial paper, and other assets to maintain its peg to the U.S. dollar. It doesn't fully open its books for complete audits, but it assures its investors it has sufficient underlying reserves through third-party attestations.
Tether's scale gives it a significant advantage against smaller stablecoins, and it's deeply integrated into other popular blockchains. Therefore, if you want to hold some U.S. dollars -- but don't want to open a traditional bank account -- it might be a good idea to buy some Tether right now.
Before you buy stock in Tether, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Tether wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $450,256!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,171,666!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of February 2, 2026.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.