Only an exchange that is somehow on-the-hook to redeem USDT for actual USD at parity would have problems. An exchange could offer USDT trading but still have n

Only an exchange that is somehow on-the-hook to redeem USDT for actual USD at parity would have problems. An exchange could offer USDT trading but still have negligible exposure to its value itself. And then if USDT goes to zero – radically breaking the intended parity-with-USD – direct losses should be confined to USDT holders, not exchanges.