I found a thread of someone explaining how tether on #lightning works.
Discussion
Reminds me of nostr:nprofile1qqsvn0dkjt80raqrxd470c98n7zrdehmcvj6p5hgw3kyku6zyd8z0fqpzdmhxue69uhhwmm59e6hg7r09ehkuef0007a2q how they let you send Bitcoin or dollars and receive Bitcoin or dollars. They don't have to match. Still don't know how I feel about the whole thing.
Happy to have an increased interest and use of lightning but what's the cost going to be? 🤔
Seems like it would allow an Uncle Jim edge node to hold a USD balance for a user without assuming the price fluctuation risk involved in contract-for-difference
Also allows the spooks who want to move USD to their unbanked operatives to have better privacy
Could also allow seemingly private conversions from BTC to USD for operators running both types of nodes without relying on a centralized exchange