I’m sure some people would disagree, but if they can’t invest "their" money in “safe” assets, how are they supposed to make a profit? Personally, I don’t think they should be allowed to invest, they’d have to change their whole business model, because those “safe” assets aren’t really safe, and they could get burned if the economy goes south.

Also, don’t forget that the 1:1 redemption guarantee only applies when you swap USDT directly with them, not on exchanges. To redeem directly you need at least 100K, and if you do it on an exchange you’ve got the spread.

So basically, for regular folks, it’s not really a 1:1 conversion, plus there’s still a risk of losing funds.