If the bank has 1M deposits, its net assets are 0. It has 1M is cash and has 1M in liabilities to depositors. If the bank loans out 900K, then it still has 0 net assets. It has 1M in liabilities to depositors, 100K in cash, and an "IOU" worth 900K (ignoring interest). Tether is different. When it mints and sells 1M USDT, it gets 1M is cash, but doesn't have any liability to Tether holders other than the honor system. It could easily pay a 500K dividend to its owners and no one would know.
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