Tether (USDT) is attractive to high-risk traders who are seeking high return and low exchange fees. This doesn't mean it is good or will remain stable indefinitely—I would not be surprised if it follows a similar path as UST. As it is an ERC20 token[1], it can be held and transferred in a non-custodial fashion as with most other crypto tokens, but with the caveat that it is run by a centralized entity and therefore your address could be frozen/blacklisted by their contract. The same is not true of all stablecoins; DAI cannot freeze an address, for example.
It might be hard to realize, but there are dozens or hundreds of stablecoins. Anybody can publish a new stablecoin as the blockchain is permissionless (literally: nobody needs permission to deploy a new ERC20 token). Obviously not all purported "stablecoins" will be safe, stable, or useful; but it also does not mean that every one will carry the same risks as UST and USDT. A government could issue a ERC20 token for example and it would largely be seen as "safe" with the caveat that it is centralized.
It might be hard to realize, but there are dozens or hundreds of stablecoins. Anybody can publish a new stablecoin as the blockchain is permissionless (literally: nobody needs permission to deploy a new ERC20 token). Obviously not all purported "stablecoins" will be safe, stable, or useful; but it also does not mean that every one will carry the same risks as UST and USDT. A government could issue a ERC20 token for example and it would largely be seen as "safe" with the caveat that it is centralized.
[1] https://ethereum.org/en/developers/docs/standards/tokens/erc...