[Marazan]

What if the commercial paper was IOUs from cryto-exchanges that were issued in return for un-backed Tether. The IOU then being treated as backing.

What if "crypto-exchanges" just means Bitfinex and no-one else.

You notice that they carefully said the secured loans were against non-partner entities. They said nothing of the sort about the commercial paper.

[FabHK]

And then when things go downhill and you want to redeem your USDT, they'll hand you a bunch of IOUs from Binance. Good luck redeeming those.