[treyd]

> It would be very simple for Tether to just hold $1 for each 1 Tether coin.

It would not be "very simple" for them to do this. No commercial bank lets you walk up to the teller with $1B and ask to deposit it, much less $93B. The financial system doesn't work that way. They have to cycle it through bonds on the repo market, which is what most huge firms do.

[jujube3]

This seems like annoying pedantry. Holding same-as-cash assets is not rocket science, there are plenty of professionals who could help you with that. On Vanguard you can buy things like T-bills with a few clicks. (I am not suggesting that they're using Vanguard specifically)

[a_dabbler]

HSBC has had money laundering scandals with amounts in excess of 1b$