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Tether solvency fears are ‘misplaced’ as company sits on large surplus: CoinShares

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 4 Views

James Butterfill counters claims about Tether’s solvency, pointing to a multibillion-dollar surplus despite new criticism from Arthur Hayes and S&P Global.

Concerns about stablecoin issuer Tether’s financial stability resurfaced this week after BitMEX founder Arthur Hayes warned the company could face serious trouble if the value of its reserve assets were to fall. But CoinShares’ head of research, James Butterfill, pushed back on those claims.

In a Dec. 5 market update, Butterfill said fears over Tether’s solvency “look misplaced.”

He pointed to Tether’s latest attestation, which reports $181 billion in reserves against roughly $174.45 billion in liabilities, leaving a surplus of nearly $6.8 billion.

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