[dannyw]

The same way your bank account is <3-4% backed by dollars, and the rest in the form of Treasury notes, bonds, credit, and loans. Just like Tether.

Welcome to fractional reserve banking. It's been this way, with every single account, for decades now.

[beforeolives]

No, it's not the same at all. Tether is not a bank. Banks are audited and bank deposits are insured. Banks can't print money unilaterally. Tether doesn't have the same regulations apply to it.