[all_blue_chucks]

Fractional reserve BANKING is when a bank keeps a fraction of its deposits on hand while the rest is being INVESTED so that they can earn money to pay you interest. The money exists, but most of it is tied up in long-term investments.

Is Tether a bank? Does it invest its reserves? If you answered no to either of those questions, then you have no business comparing it to a fractional reserve banking system.