Many people are frightened by Tether's balance sheet, thinking it looks precarious and on the verge of insolvency. This is the audit report as of September 30th. According to the data, Tether's total assets are 181 billion, and total liabilities are 174 billion, leaving only a 3.74% buffer. Sounds scary, right? However, first of all, the liabilities here do not refer to debts incurred in business operations but rather the issuance quantity of USDT, which is the obligation to redeem for users. Therefore, the nature of this debt is akin to deposits rather than loans. Hence, it is similar to bank deposits. So, how much reserve do bank deposits have? Between 5% to 10%. That means if you deposit 100 in the bank, the bank only needs to keep at least 5, and the rest can be lent out. Currently, Tether is in a completely excess situation. Secondly, even if we remove the volatile risk assets it holds, such as gold, BTC, and corporate bonds, 77% of the remaining assets are stable liquidity assets like cash, government bonds, and money market funds. This means Tether's cash reserves have reached 77%, while banks only maintain a maximum of 10%. Which has a higher risk of collapse?