Tether Faces Fresh Insolvency Warnings Over ‘Volatile’ Reserve Assets
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Arthur Hayes warned that Tether's large Bitcoin and gold holdings pose a solvency risk if prices fall. A 30% drop could erase Tether's equity buffer. This raises concerns about Tether's financial stability.
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- Arthur Hayes publicly warned that Tether’s growing exposure to Bitcoin and gold could pose a solvency risk if prices tumble
- Hayes argued that a 30% drawdown in Bitcoin and gold holdings could wipe out Tether’s equity buffer, theoretically rendering USDT insolvent
- Willy Woo, a well-known on-chain crypto analyst, called on Grok to compare Tether’s asset backing to a traditional bank
Arthur Hayes publicly warned that Tether’s growing exposure to riskier assets (namely, Bitcoin and gold) could pose a solvency risk if prices tumble.
According to Tether’s Q3 2025 attestation report, the company holds roughly $12.9 billion in gold and $9.9 billion in Bitcoin, alongside traditional holdings in cash, US Treasuries, repo agreements, and other instruments.
Hayes argued that a 30% drawdown in those Bitcoin and gold holdings could wipe out Tether’s equity buffer, …
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