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Does it matter if Tether has dollars to “back” USDT? What’s backing your dollars in Wells Fargo? Whole lot of nothin.

-Reserve Requirements

-As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

This doesn't answer your good question, but at least there is FDIC insurance for the consumer.

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