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Just to expand on the comments made by other places: The holders of Tether lose money (effectively) due to inflation. The owners of Tether the corporation (Binance) can collect the interest, which is cash money. Billions is billions.

They only have to repay the face value of the deposited cash. Yes, the real purchasing power goes down over time, but that's not their problem!

Inflation is irrelevant if your stable coin is pegged to the currency that is inflating.

Yes, but it doesn’t matter if the money you are losing to inflation is being lent to you for free. Although coinbase does pay a small percentage to usdc holders on their exchange I think it is one of the ways to convince people to switch away from tether.