CoinShares head of research James Butterfill refutes concerns about Tether’s solvency amid warnings from BitMEX founder Arthur Hayes. Tether maintains $181 billion in reserves against $174.45 billion in liabilities. Hayes’ claim of risk due to Bitcoin and gold holdings is challenged by CEO Paolo Ardoino. Tether generated over $10 billion in profit this year.

Hayes sparked controversy with claims about Tether’s risky trades and exposure to volatility. S&P Global downgraded USDT’s peg-stability rating, prompting a strong defense from Tether CEO Ardoino. Tether’s robust financial position and diverse asset holdings are highlighted in response to criticisms.

Analysts note Tether’s overcollateralized structure and robust equity buffer compared to traditional banks. Tether’s holdings include interest-yielding Treasuries and commodity trade lending. Tether’s expansion beyond stablecoin issuance and its unique capital structure are analyzed amidst ongoing criticisms and regulatory challenges.

Read more at Yahoo Finance: CoinShares Debunks Tether Collapse Fears After Hayes Warning