$USDC Fact #6 about USDT (Tether): USDT is not always backed solely by cash. Although a 1:1 peg to the dollar is declared, Tether's reserves include not only fiat money but also:

short-term securities (for example, US Treasury bonds),

commercial bonds,

bank deposits,

even digital assets.

- This is one of the reasons why there are often disputes around USDT regarding its liquidity and risks in the event of a financial crisis.