Arthur Hayes Claims Tether Is at Major Risk, Crypto Backs USDT Issuer
BitMEX co-founder Arthur Hayes said that the world’s largest stablecoin issuer, Tether, is preparing for a Federal Reserve rate‑cut cycle. He is concerned that as Tether increases its exposure to Bitcoin and gold, it also increases the chance that a sharp pullback in those assets could weaken its equity cushion.
While Hayes called this a massive risk, the broader crypto market argues that Tether is far more financially strong than it is perceived to be.
Hayes said that Tether’s latest disclosure shows a shift from pure cash-like instruments into Bitcoin and precious metals. With about $181 billion in total assets and $174 billion in liabilities, the issuer remains solvent on paper, but not fully liquid.
A sudden…
