Loading Search...
BitMEX co-founder Arthur Hayes reignited debate around Tether 's financial stability, warning of solvency risks.
Author: Sahil Thakur
30th November 2025 – BitMEX co-founder Arthur Hayes reignited debate around Tether ’s financial stability. In public comments, he criticized the stablecoin issuer’s shift toward riskier reserve assets like gold and Bitcoin. Hayes warned that this change could lead to solvency risks, especially if market prices drop.
Tether currently holds around $178.8 billion in total reserves. Of this, about $97.5 billion is in cash and short-term U.S. Treasuries. These instruments generated billions in profits during 2025 due to high interest rates.
However, with the U.S. Federal Reserve expected to cut rates, Tether appears to be hedging. Its Q3 2025 attestation report, released in late November, shows increased exposure to gold and Bitcoin. Hayes argued this move exposes Tether’s equity buffer, estimated at $6.5 billion to market volatility.
According to Hayes, a 30% drop in both gold and Bitcoin would significantly damage Tether’s reserve value. This could potentially eliminate its equity buffer. While such a scenario wouldn’t cause an instant USDT collapse, it could trigger large-scale redemptions.
Hayes emphasized the importance of real-time balance sheet transparency. He predicted that major exchanges and holders would demand this going forward. Meanwhile, S&P Global has also raised concerns about Tether’s reserve composition in past reports.
Tether’s asset breakdown (as of Q3 2025) includes:
Notably, Tether now holds approximately 44,000 ounces of gold, valued at $2,700 per ounce, and 25,000 BTC, valued at $48,000 each. These assets, although a small percentage of total reserves, create new vulnerabilities. Hayes believes a synchronized drop in both could severely weaken Tether’s position.
Tether has not directly responded as of November 30 to Arthur Hayes. However, its leadership continues to emphasize full USDT backing and strong profitability. Circulating supply remains stable around $176 billion, and the stablecoin briefly dipped only to $0.9998 before returning to peg.
Market response was cautious:
Many on social media dismissed the warnings as recycled “FUD.” Others noted that Tether withstood $10B+ in redemptions during past market shocks. Some even called the timing a “bottom signal,” referencing how similar events preceded price rebounds in the past.
Adding to the scrutiny, Akash Network CEO Greg Osuri publicly supported Hayes’s concerns. Known for his own past losses in the TerraUSD collapse, Osuri echoed the view that Tether’s reserve strategy is risky. He urged users to exit USDT to avoid potential losses.
Osuri pointed out that Tether’s liabilities ($174B) exceed its liquid cash holdings ($139B), and questioned whether secured loans offer real protection. In multiple X posts, he highlighted that no central authority supports Tether, unlike traditional banks.
He also recalculated the risk, noting that Tether’s attestation priced BTC at $114K, not the current $48K. Based on real market prices, Osuri estimated that only a 25% drop in gold and BTC could trigger theoretical insolvency.
Tether’s reserve strategy has always been under the microscope. Its expansion into gold and Bitcoin may hedge against falling interest rates, but it also invites new risks. Hayes and Osuri believe those risks are now greater than ever.
For now, USDT remains stable. But growing calls for live transparency and stricter oversight signal that the stablecoin ecosystem may be heading toward a new phase, one where proof of stability becomes as important as utility.
Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.
