For each dollar they issue 1 Tether. So we must trust that they are only issuing 1 tether for each USD deposited. We also need to trust the company won't go bankrupt for whatever reason. We must also trust that no agency/goverment will seize the funds of the bank accounts, again for whatever reason. We also need to trust that even if none of the previous happens, that no intermediary bank will reject the transfer when we request the USD value. Also, there's no interest paid on the deposit and, in the best possible scenario, we will be able to recover the exact devalued USD value.
I don't get it.
It's easy.
It's just the same if you have your USD deposited in a bank. You need to trust the bank won't go bankrupt for whatever reason. You must also trust that no agency/government will seize the funds of your bank account, again for whatever reason.