In accordance with CoinRepublic, Arthur Hayes, co-founder of BitMEX, has raised concerns over Tether's recent shift in reserves toward Bitcoin and gold. He argues that this move could amplify risks if markets experience a sharp downturn, potentially squeezing Tether’s equity cushion and reopening questions about USDT solvency. S&P Global Ratings also issued a 'weak' stability score after reviewing Tether’s reserve mix, noting the increased exposure to volatile assets. However, a former Citi analyst pointed out that Tether’s corporate holdings, including mining operations and additional Bitcoin, along with its strong profitability, may offset these concerns.
Arthur Hayes Warns Tether's Shift to Bitcoin and Gold Could Heighten Risks
The Coin RepublicShare
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