It is mostly being used between the exchanges.
They are centralized and they are not to be trusted for the long term.
Use case example:
You want to transfer $100k from "exchange A" to "exchange B". While you can already use BTC or any other crypto you like between those exchanges, there might be some unwanted volatility during the transaction completion. The chances are lower lately than what it used to be but it is still there.
Other than this one I don't really see any other use cases. I mean some people use it against BTC/Crypto as an hedge but it doesn't make much sense. If the Authorities decide to end Bitfinex tomorrow, you can say goodbye to your USDt. (this applies to other stablecoins as well) Unlike the USD balance on your exchange, all the people around the world who use USDT will get affected by it.
It has its advantages but I believe the disadvantages are weighting more.
When the day comes and people realize you don't need to get back to FIAT at all while you are on crypto, they are going to disappear on their own.
They are centralized and they are not to be trusted for the long term.
Use case example:
You want to transfer $100k from "exchange A" to "exchange B". While you can already use BTC or any other crypto you like between those exchanges, there might be some unwanted volatility during the transaction completion. The chances are lower lately than what it used to be but it is still there.
Other than this one I don't really see any other use cases. I mean some people use it against BTC/Crypto as an hedge but it doesn't make much sense. If the Authorities decide to end Bitfinex tomorrow, you can say goodbye to your USDt. (this applies to other stablecoins as well) Unlike the USD balance on your exchange, all the people around the world who use USDT will get affected by it.
It has its advantages but I believe the disadvantages are weighting more.
When the day comes and people realize you don't need to get back to FIAT at all while you are on crypto, they are going to disappear on their own.
There was a thread sometime that they were discussing USDT can be sent on myetherwallet. I can't believe it at first but I guess some of them had done it before. It still make sense if of course to hedge funds and wait til the bear finally slowdown. I haven't tried it myself but if you can send tether to another exchange then it could also be done to send it to a desktop wallet.
. Especially if you're anticipating a crash in the price of a certain cryptocurrency; you would sell that coin/token for certain stablecoins to sort of "protect" your investments, so you could use those stablecoins to buy back lower, or to buy other cryptocurrencies.