Based on Crypto.News, Arthur Hayes, former BitMEX CEO, warned that Tether is running a risky interest rate trade that could threaten the solvency of USDT if markets move against the stablecoin issuer. Hayes noted that a 30% drop in Tether’s Bitcoin and gold holdings could erase its equity cushion, potentially making USDT insolvent. Tether’s latest attestation report shows $9.86 billion in Bitcoin and $12.92 billion in gold. Hayes argued the company is betting on Federal Reserve rate cuts, which would reduce interest income from U.S. Treasuries. In other Tether news, the company confirmed it is closing its mining operations in Uruguay after failed electricity pricing negotiations, and has let go of 30 of 38 staff in the country.
Arthur Hayes Warns Tether's Fed Rate Bet Could Threaten USDT Solvency
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