CoinShares Counters Tether Solvency Fears With Fresh Reserve Data

• CoinShares disputes renewed solvency fears raised against Tether this week.
• The latest attestation shows strong reserves and a substantial financial surplus.
• Hayes and S&P intensify concerns about Tether’s reserve stability.
• USDt continues leading the stablecoin market with a dominant circulation share.

Concerns over Tether’s financial footing resurfaced this week after renewed criticism from Arthur Hayes and a downgrade from S&P Global. Their warnings sparked another round of market anxiety, but CoinShares pushed back. James Butterfill, the firm’s head of research, said the worries do not align with current data.

He highlighted Tether’s latest attestation, which lists $181 billion in reserves against roughly $174.45 billion in liabilities. That figure leaves a surplus close to $6.8 billion and suggests the company maintains a strong financial position.

Butterfill noted that Tether remains one of the industry’s most profitable players. The firm generated about $10 billion in profit during the first three quarters of 2025. He said stablecoin risk should never be ignored, but the available numbers do not show broad instability. His comments aimed to calm a market that reacts quickly to any hint of weakness in major stablecoin issuers.

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Hayes Rekindles Long-Running Solvency Concerns

Solvency speculation around Tether has circulated for years, often rising when market volatility increases. The latest wave began after Hayes suggested the company faces major exposure through its reserve composition. He argued that Tether is running a large interest-rate trade and warned that a 30% decline in its Bitcoin and gold holdings could erase its equity.

Both assets make up a meaningful share of the company’s reserves, and its gold exposure has grown during the past few years. His comments gained attention as traders reassessed the stability of reserve-backed assets across the sector.

Market participants pointed out that Tether’s Bitcoin holdings and gold holdings fluctuate significantly. Hayes stated that the volatility can be problematic in a sharp recession. The comments rekindled a long-running debate about the risk threshold for a type of asset whose purpose was to exist at a stable price.

S&P Downgrade Adds Pressure To Outlook

Tether also came under more pressure following the downgrade of its strength in maintaining the USD peg by S&P Global. The rating agency pointed out the vulnerability of the stablecoin to gold, loans, and Bitcoin. But the new development was followed by a rapid statement from the CEO of Tether.

Despite the criticism, USDt remains the leading stablecoin in the market. The currency has approximately $185.5 billion in circulation, while contributing close to 59% of the entire industry. The company faces fresh doubts, but it appears to have a strong balance sheet, given its latest assurances and financial results.

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