In recent discussions surrounding cryptocurrency stability, the co-founder of BitMEX, Arthur Hayes, voiced concerns about Tether’s investments in Bitcoin and gold. He suggested that these shifts could leave the stablecoin highly vulnerable in the event of market downturns.
Hayes indicated that even a slight depreciation of around 30% in Tether’s asset portfolio could significantly diminish their financial strength, putting USDT at risk.
These comments prompted renewed discussion about the transparency and reliability of Tether’s financial standing within the market.
The ongoing adjustments at Tether may be reflective of strategies to hedge against fluctuating interest rates. My analysis suggests they anticipate a change in federal rates that could impact their income stream. Their moves into gold and $BTC might yield high returns if monetary conditions shift…
— Arthur Hayes (@CryptoHayes) November 29, 2025
Is Tether’s Financial Stability Misjudged?
A notable response came from Joseph, a former analyst at Citi, who challenged Hayes’s assertions. He believes that the public financial disclosures only partially represent Tether’s overall asset portfolio, potentially overlooking critical elements.
Having conducted extensive research on Tether’s financials, I found that @Citi did not highlight some vital aspects that could change the narrative.
1) 𝐓𝐡𝐞𝐢𝐫 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐞𝐝 𝐚𝐬𝐬𝐞𝐭𝐬 ≠ 𝐭𝐨𝐭𝐚𝐥 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐚𝐬𝐬𝐞𝐭𝐬
Tether’s financial growth indicates a robust balance sheet extending beyond just their disclosed assets…
— Joseph (@JosephA140) November 30, 2025
Joseph emphasized that Tether might have a much stronger equity positioning, estimating it between $50 billion and $100 billion, far exceeding the figures often referenced by critics.
Examining Tether’s Financial Reservoirs
Joseph’s analysis suggests that Tether’s investments in U.S. Treasuries amount to approximately $120 billion, yielding an interest close to 4%. This translates to a potential net income of around $10 billion annually.
Furthermore, he pointed out valuable corporate assets like equity stakes and mining operations, which are not included in public reserves. These assets, in his view, further augment Tether’s capital resilience.
In response to the discourse, Paolo Ardoino, Tether’s CEO, mentioned around $30 billion in “group equity” as a protective measure against market fluctuations.
Regarding Tether’s ongoing discussions:
From the latest affirmation (Q3 2025):
“Tether will maintain a multi-billion-dollar excess reserve and an overarching proprietary group equity nearing $30 billion.”
(As of Q3 2025, Tether had ~7B in excess equity…)
— Paolo Ardoino (@paoloardoino) November 30, 2025
Ultimately, Hayes’s concerns shed light on the inherent risks associated with volatile assets impacting reserve valuations. He contended that while Tether’s maneuvers may aim to protect against predicted monetary shifts, these strategies could falter during market sell-offs.
Insights indicate that the public attestations typically focus on USDT backing but might not account for how quickly Tether can access its wider asset portfolio in times of need, hence raising investor apprehensions.
What This Dispute Means For the Cryptocurrency Space
This ongoing debate emphasizes two critical observations. Firstly, the figures at stake are quite significant, with Tether claiming substantial investments and equity amounts ranging from $30 billion to estimates as high as $120 billion.
Secondly, the focal point remains the level of transparency about asset liquidity. Should Tether be capable of accessing its entire asset base during times of crisis, it may withstand considerable market fluctuations. However, without such access, even with a robust long-term equity position, short-term liquidity challenges could emerge.
Image sourced from Pexels, chart data provided by TradingView
