i’ve been reading about the company behind tether and i’ve noticed that the actual money in reserve is around 3%,while 60% is held for lending and interest based instruments.
so from my understanding is that when you “buy” USDT, most of the time they wont hold your real value of dollar in their wallet, instead they will USE your money to lend it out!
can someone clarify this mess please?
Someone Posted new comment July 22, 2025
nevermind found the answer
looks like the “lend out” your money when you mint their token, in a spot market you just exchange with the seller