Tether Faces Fresh Insolvency Warnings Over ‘Volatile’ Reserve Assets

• 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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