> Yes, it is, which in practical terms means that the company behind Tether should own real-world assets that cover all the outstanding USDT.

Asset. Not assets.

There is only one asset that an operation so big and trusted by so many should hold and that is U.S. Treasuries.

If you feel frisky you could do G-8 govt. bonds but that's about it really. And you are taking a chance on the forex exchange.

FTX just imploded because they didn't realize this simple fact. If you are a custodian and you are not advertising yourself as an active asset manager you should stick to US Treasuries and even that could be considered a breach because you should keep USD in a bank.

Keep USD in a bank and you have nothing to fear.