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Any chance you could link me to where you get that $200k figure from?
They've services over $10bn of withdrawals in the last two weeks alone.
Stonehedge-
sorry, typo - $200 mm!
https://tether.to/en/transparency/The ability to service withdrawals tells you about liquidity not solvency. They are deeply undercapitalised versus a traditional bank.
NickCJ
I really doubt that is the case. By their own numbers (which aren't audited) they have something like $200k of capital versus $70 bn of assets. Average retail bank would have more like $5 bn on a balance sheet that size. Their ability to absorb losses on their portfolio of venture bets / crypto-backed lending is virtually non-existent.
Of course, the advantage they have versus a retail bank is that they can just decline to pick up the phone if one of their customers wants to make a withdrawal ;-)