Tether's liquidity position keeps getting compares to banks, as though banks hold 10% of all reserves and nothing else They hold 10% in _cash_, and 90% in debt

Tether's liquidity position keeps getting compares to banks, as though banks hold 10% of all reserves and nothing else They hold 10% in _cash_, and 90% in debt. That debt is liquid and can be traded for more cash easily in the case of a bank run (possibly even guaranteed by the fed?) Tether _may_ be holding cash and assets covering 100% of its reserves, but 1) it's not sure, 2) it's not clear how liquid those assets are (e.g. dubious CP) If Tether hold cash+assets covering 90% of issuance then it's a scam. If they hold 99% then it's a scam. It's not equivalent to fractional reserve banking