If you have looked for a way to move money between Iran and Türkiye, you have certainly run into the word “Tether”, usually with explanations that are either too technical or too promotional. This article says in plain language what Tether is, who issues it, which networks it moves on, how it is held and which risks deserve attention. It is an explanation, not a recommendation; we are not telling anyone to buy or not to buy it.
What a stablecoin is
Well-known cryptocurrencies such as Bitcoin have a free-floating price that rises and falls every day. A “stablecoin” is a digital token designed to keep its value attached to a reference asset, usually the US dollar. The aim is to move value over crypto networks without bearing the daily swings of the crypto market. Tether (ticker USDT) is the best-known dollar stablecoin.
Who issues Tether and what backs it
Tether is issued by the company Tether. On its transparency page it states that each token is kept one-to-one with its reference currency (for USDT, the US dollar) and is “backed 100% by Tether's reserves”; the same page says the issuer's assets exceed its liabilities and that circulation figures are typically published daily. The composition of those reserves and the periodic reports on them can be read in the reports section of that page.
Two points matter for an ordinary user: first, USDT is not “a dollar” but the commitment of a private company to keep it equivalent to a dollar; second, that commitment is supported by the company's own reports, so trusting it means trusting that company and its reporting.
Which networks USDT moves on
Tether is not a network of its own; it is a token issued on several different blockchains. According to the issuer's official list as of writing, the active networks include Ethereum (ERC20), Tron (TRC20), Solana, TON, Avalanche, NEAR, Tezos, Aptos and a few others. Some older networks such as Omni (on Bitcoin), EOS and Algorand are marked “deprecated” on the same list, and the issuer no longer issues or redeems tokens on them.
For the user this means:
- Every network has its own address format. A Tron address starts with “T”, an Ethereum address with “0x”. The two are not compatible.
- Fees and speed differ. The fee for a transfer on a network depends on how busy that network is and changes during the day; the network that is cheap today is not always cheap.
- Sender and receiver must be on the same network. Sending USDT from the wrong network is one of the most common ways to lose money.
That is why, when you deal with an exchange or USDT conversion office, the network and receiving address are always confirmed separately.
Custody: a platform account or a personal wallet?
USDT is held in one of two places:
- An account on a platform (an online exchange): the platform keeps the keys and you log in with a username and password. It is more convenient, but your access depends on verification, the platform's rules and its health; a restricted account means restricted access to your USDT.
- A personal wallet: software on your phone or computer, or a hardware device, where the “private key” and the “recovery phrase” are in your own hands. You have full control and full responsibility: whoever holds the recovery phrase owns the money, and if it is lost no support desk can bring it back.
One thing is always true: no genuine support team ever asks for your recovery phrase or private key.
Risks to take seriously
- Issuer and reserve risk: USDT's value depends on the issuer's ability and willingness to redeem tokens for dollars. This has been debated for years, which is why reading the reserve reports and independent views matters.
- Moving away from one dollar: on crisis days USDT has temporarily traded below one dollar on some exchanges; on 12 May 2022, for instance, during the collapse of the Terra stablecoin, it dipped to around $0.95 before recovering. On Iran's market the toman price of USDT is discovered separately, at a distance from the open-market dollar; the USDT rate page shows that daily.
- Regulatory risk: countries have different rules for stablecoins and those rules change. Since 2025 Türkiye has applied transfer caps and withdrawal waiting periods on licensed platforms; the article on stablecoin transfer limits in Türkiye has the dated figures.
- Fraud and human error: fake tokens with similar names, “support” messages, phishing links, wrong addresses and wrong networks; a blockchain transaction cannot be reversed and a mistake usually cannot be undone.
- Hidden cost: network fees, the buy–sell spread and conversion fees can add up to more than expected. For every conversion, get the rate and fee in writing before execution.
USDT for moving money between Iran and Türkiye
Many Iranians living in Türkiye use USDT to move value, because it travels over crypto networks and can be converted to lira or cash in Istanbul. The details of that route, from Turkish rules to cashing-out tips, are in the complete guide to Tether in Türkiye. A few permanent principles:
- Before sending, get the rate, fee, network and address confirmed in writing, and for a large amount make a small test transfer first.
- Deal only with counterparties that have a fixed office and a known identity and that issue receipts.
- Identity documents and the source of funds may be requested; that is part of the legal framework, not a sign of distrust.
A short glossary
- Stablecoin: a digital token whose value is tied to a reference asset (here, the dollar).
- Issuer: the company that issues the token and commits to redeeming it; for USDT, the company Tether.
- Network: the blockchain on which the token moves (Tron or Ethereum, for instance); each network has its own addresses and fees.
- Private key and recovery phrase: the secrets that prove ownership of a personal wallet; whoever holds them owns the money.
- Spread: the gap between the buy and sell prices on a market or at an exchange.
- Tether premium: the gap between the toman price of USDT and the open-market dollar on Iran's market.
In short
Tether is a digital token that its issuer keeps equivalent to one dollar and that is issued on several different networks. It is useful for moving value, but not risk-free: trust in the issuer, the right choice of network, safe custody of keys and each country's rules all matter. If you intend to use it, understand the mechanics first, start with small amounts and never decide on the basis of a promised profit or a sense of urgency.
Frequently asked questions
Is one USDT exactly one dollar?
The issuer states that it keeps each token equivalent to one dollar, backed by the company's reserves. In practice USDT trades around one dollar on the markets and has temporarily moved away from it on crisis days; on Iran's market its toman price is discovered separately.
What do TRC20 and ERC20 mean?
They are the names of networks on which USDT is issued: ERC20 on the Ethereum network and TRC20 on the Tron network. Addresses, fees and speeds differ, and sender and receiver must use the same network.
What happens if I send USDT on the wrong network?
It may be lost permanently, or recovering it may be difficult and expensive. Confirm the network and address with the recipient before every transfer and test with a small amount first.
Where should I keep USDT?
Either in an account on a platform, which holds the keys itself, or in a personal wallet, where the key and recovery phrase are in your hands. Each has its own advantages and risks, and a recovery phrase must never be shared with anyone.
Is this article a recommendation to buy USDT?
No. It only explains what USDT is and how it works. Whether to hold or use it depends on your circumstances, and this site does not give investment advice.
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