Banks don't have to back the dollar by anything anymore.

With Tether - it's best to follow "fraud until proven otherwise" principle

That "commercial paper" could very well be IOUs from themselves to themselves

Their commercial paper would make them one of the largest players in the global market if their numbers were true, but nobody knows what they have invested in, they say it is in crypto as well (eek!), they've been found guilty of fraud multiple times, including faking assets by using temporary bank transfers, and the amounts we're talking about make it very hard to believe they could function at that scale without making lots of noise in the global commercial paper market.

So basically, like most other things they say, it's simply not credible.

https://www.ft.com/content/342966af-98dc-4b48-b997-38c008042...