Bitcoin

Gold

Arthur

<h3 class="wp-block-heading" id="h-key-insights"><strong>Key Insights</strong></h3>
<ul>
 <li>Arthur Hayes warns that Tether move into Gold and Bitcoin could amplify risks if markets suffer a sharp pullback.</li>
 <li>S&amp;P Global Ratings published a “weak” stability score following an analysis of Tether’s array of reserves</li>
 <li>Even so, Tether’s robust corporate holdings and solid profits help balance out those concerns, argued an expert ex-analyst of Citi bank.</li>
</ul>
<p>BitMEX co-founder Arthur Hayes observed earlier today that Tether is quietly repositioning itself ahead of what he expects to be the Federal Reserve’s next round of rate cuts.</p>
<p>In his view, the company’s latest attestation makes the shift easy to spot: it’s holding fewer Treasuries and leaning more heavily into Bitcoin and gold.</p>
<p>Hayes argues that this isn’t a random adjustment. Instead, he sees it as a sign that Tether is getting more comfortable with alternative assets, especially those that tend to gain strength once interest rates start to fall.</p>
<h2 class="wp-block-heading" id="h-tether-shift-into-bitcoin-and-gold-heightens-downside-risks"><strong>Tether Shift Into Bitcoin and Gold Heightens Downside Risks?</strong></h2>
<p><a href="https://x.com/CryptoHayes/status/1994915256150495652" target="_blank" rel="noopener noreferrer nofollow">In a post on X, Arthur Hayes warned</a> that Tether’s new strategy isn’t without risk. He said a sharp drop in Bitcoin or gold could squeeze the company’s equity cushion.</p>
<p>It could reopen old questions about USDT solvency. According to him,<a href="https://www.thecoinrepublic.com/2025/11/29/crypto-firms-central-banks-scramble-for-gold-even-as-tether-acquires-26t/" rel="noopener noreferrer nofollow"> the shift in reserves looks like a clear attempt to adjust to a changing macro environment.</a></p>
<p>Notably, Tether’s latest report puts its total assets at about $181 billion. Most of that sits in cash, T-bills, repos and money-market instruments.</p>
<p>The filing also shows nearly $13 billion in precious metals and close to $10 billion in Bitcoin. Secured loans stand at more than $14 billion, with smaller allocations rounding out the rest.</p>
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  <img loading="lazy" width="680" height="615" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/11/image-191.jpeg" alt="">
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   Tether assets breakdown, source: X
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<h2 class="wp-block-heading" id="h-s-amp-p-flags-weak-stability-score-after-reviewing-tether-s-reserve-mix"><strong>S&amp;P Flags “Weak” Stability Score After Reviewing Tether’s Reserve Mix</strong></h2>
<p>S&amp;P Global Ratings issued a “weak” stability score after reviewing Tether’s mix of reserves.</p>
<p>The agency said Tether is leaning further into assets that swing in value, and warned that this mix could leave USDT exposed if markets turn violent.</p>
<h2 class="wp-block-heading" id="h-former-citi-analyst-argues-tether-profits-and-corporate-assets-offset-reserve-concerns"><strong>Former Citi Analyst Argues Tether Profits and Corporate Assets Offset Reserve Concerns</strong></h2>
<p>Former Citi analyst Joseph said Tether’s public reserve disclosures only cover the assets directly backing USDT.</p>
<p>He explained that a separate corporate balance sheet holds equity stakes, mining operations, corporate reserves, and extra Bitcoin that never shows up in the attestation.</p>
<p>In his view, these additional holdings change the company’s overall risk picture. Joseph also described Tether as highly profitable.</p>
<p>He noted that the firm holds roughly $120 billion in interest-bearing Treasuries. Since 2023, that pile has generated close to $10 billion in yearly profit, while operating costs have stayed low.</p>
<p>According to him, this efficiency drives Tether’s equity value. He pushed back on earlier reports of a $20 billion raise at 3%, saying that figure pointed to a valuation he did not consider realistic.</p>
<p>He added that Tether’s structure differs sharply from banks. Most banks keep only 5% to 15% of deposits in liquid assets and rely on central banks as a backstop.</p>
<p>Tether has no such safety net. Joseph said the company leans on strong returns to compensate for the absence of a lender of last resort.</p>
<p>Earlier, former Tether CEO Paolo Ardoino pushed back against S&amp;P’s downgrade of USDT. He said traditional rating agencies don’t worry him, arguing that their past models failed to spot the real risks inside companies that later collapsed.</p>
<p>Ardoino stressed that Tether holds no toxic assets. He described the firm as<a href="https://www.thecoinrepublic.com/2025/11/04/tethers-q3-dominance-in-3-numbers-what-lies-ahead-for-them/" rel="noopener noreferrer nofollow"> overcapitalized, profitable, and built on a reserve base that he considers solid. </a></p>
<p>He added that the company’s growth reflects a broader shift toward new financial systems that sit outside the traditional banking world.</p>
<p>The post <a href="https://www.thecoinrepublic.com/2025/11/30/arthur-hayes-raises-red-flags-over-tether-pivot-to-bitcoin-and-gold-reserves/" rel="noopener noreferrer nofollow">Arthur Hayes Raises Red Flags Over Tether Pivot to Bitcoin and Gold Reserves</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Arthur Hayes Raises Red Flags Over Tether Pivot to Bitcoin and Gold Reserves

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