What's not normal is misleading your customers about it. I confess I'm mostly thinking about Tether here, since it's the largest example of a coin that pretende

What's not normal is misleading your customers about it. I confess I'm mostly thinking about Tether here, since it's the largest example of a coin that pretended to be backed by dollars and actually isn't. But this case doesn't seem much different. Also banks are highly regulated about requirements for backing assets. Triply so since the 2008 collapse.