> If USDT was run by the Federal Reserve nobody would question the system

that's true, but only because the US (and the Feds) have had a good history of managing the system well (enough at least).

And if that's the case, USDT is basically USD. It's the same reason why the USD is a reserve currency in the world today.

Tether is attempting to tap into that reserve currency trust (ostensibly, to generate profit for themselves).