Tether earns many billions by investing the hundreds of billions received from issuing stablecoins, yet pay out no interest or dividends to those holding those stablecoins.
That is giving them a war chest that is (and will continue to) fund all kinds of innovations that ... increases Utility of their stablecoins.
But it is still just representative money. One USDT is essentially an IOU from Tether, and I just have to trust they keep sufficient reserves (and are not at risk of govt seizure) so that one USDT will remain valued at ~$1.
Tether earns many billions by investing the hundreds of billions received from issuing stablecoins, yet pay out no interest or dividends to those holding those stablecoins.
That is giving them a war chest that is (and will continue to) fund all kinds of innovations that ... increases Utility of their stablecoins.
But it is still just representative money. One USDT is essentially an IOU from Tether, and I just have to trust they keep sufficient reserves (and are not at risk of govt seizure) so that one USDT will remain valued at ~$1.