The post Hayes Warns on Tether Reserves as Grok Compares Bank Risks appeared on BitcoinEthereumNews.com. 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, theoretically rendering USDT insolvent. His post sparked a new round of doubt and debates across the crypto community. Greg Osuri, the founder of the Akash Network, called Tether a ticking time bomb, while Willy Woo, a well-known on-chain crypto analyst, called on Grok to compare Tether’s asset backing to a traditional bank. Comparing Tether’s reserve buffer to traditional banks The prompt showed that as of September 2025, Tether holds $181 billion in assets to cover $174 billion in liabilities it owes.  About 75-80% of its reserves are in safe, easily-sold assets like cash and US government bonds, but 20-25% is in riskier investments such as Bitcoin and gold, which makes it liquid but vulnerable to price drops, just as Hayes pointed out. As for bank comparison, Grok replied that a typical US bank only keeps 10 to 20% of its money in cash or safe securities, with most tied up in loans. They keep far less cash on hand (around 10%) but have two big safety nets… The post Hayes Warns on Tether Reserves as Grok Compares Bank Risks appeared on BitcoinEthereumNews.com. 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, theoretically rendering USDT insolvent. His post sparked a new round of doubt and debates across the crypto community. Greg Osuri, the founder of the Akash Network, called Tether a ticking time bomb, while Willy Woo, a well-known on-chain crypto analyst, called on Grok to compare Tether’s asset backing to a traditional bank. Comparing Tether’s reserve buffer to traditional banks The prompt showed that as of September 2025, Tether holds $181 billion in assets to cover $174 billion in liabilities it owes.  About 75-80% of its reserves are in safe, easily-sold assets like cash and US government bonds, but 20-25% is in riskier investments such as Bitcoin and gold, which makes it liquid but vulnerable to price drops, just as Hayes pointed out. As for bank comparison, Grok replied that a typical US bank only keeps 10 to 20% of its money in cash or safe securities, with most tied up in loans. They keep far less cash on hand (around 10%) but have two big safety nets…