CoinShares Research Head Says Tether Solvency Fears Are “Misplaced”

[madtrader]

Concerns over Tether’s financial stability resurfaced this week after BitMEX founder Arthur Hayes warned the company could face major trouble if its reserve assets dropped in value. But CoinShares’ head of research, James Butterfill, pushed back on the alarm.
In a Dec. 5 market update, Butterfill said fears around Tether’s solvency “look misplaced,” pointing to the company’s latest attestation showing $181 billion in reserves against $174.45 billion in liabilities — a $6.8 billion surplus.
He noted that while stablecoin risks should never be ignored, current data show no systemic vulnerability. Tether remains one of the sector’s most profitable firms, pulling in $10 billion in the first three quarters of the year.

[Nahid Hossen]

Good to see some research-backed perspective countering the usual skepticism.

[Abdul Khan]

If the data supports it, these solvency fears may indeed be overblown.