How does USDT minting work?

USDT minting works through a process where users deposit US dollars into Tether Limited's accounts. In response, Tether issues an equivalent amount of USDT on the blockchain. This mechanism ensures a 1:1 peg to the US dollar, maintaining stability. When users want to redeem USDT for US dollars, they can exchange it back, and Tether burns the corresponding USDT from circulation.