CoinShares Defends Tether Solvency Concerns Despite Market Criticism

Highlights:

• CoinShares has defended Tether’s solvency concerns, citing the latest attestation data.
• Tether holds $181 billion in reserves, with a surplus of $6.8 billion over liabilities.
• Despite risks, Tether remains profitable, earning $10 billion in the first three quarters of 2025.

Concerns related to the solvency of the biggest stablecoin issuer, Tether, are surfacing again after Arthur Hayes, the co-founder of BitMEX, and S&P Global downgraded it. These concerns revolve around the risks that are associated with exposure to Tether and volatile currencies such as Bitcoin and gold. However, CoinShares, one of the largest digital asset investment firms across Europe, has stepped in to dismiss these concerns.

James Butterfill, the head of research at CoinShares, addressed the fresh anxiety in a recent market update. He pointed out that existing data does not indicate any systemic risk to Tether. Butterfill noted that the latest attestation report by Tether indicates an excess of $6.8 billion between its reserves and liabilities. According to him, this surplus proves that Tether is financially stable, even though some of the assets in its reserve are volatile.

Tether’s Strong Financial Position

The latest financial report by Tether has outlined the healthy standing of the company. The stablecoin issuer now has reserves of $181 billion, with liabilities amounting to $174.45 billion. This gives a surplus of about $6.8 billion, which Butterfill claims is sufficient to offset any possible dangers that may come as a result of its asset holdings. Particularly, Tether reserves have large amounts of investments in U.S. Treasuries, Bitcoin, and gold.

Although Bitcoin and gold constitute quite a significant part of Tether assets, their fluctuations have raised concerns among critics such as Arthur Hayes. He argued that a substantial decline in the price of these assets could make Tether technically insolvent. Hayes suggested that a 30% reduction in Bitcoin and gold prices could wipe out the equity buffer of the company.

CoinShares, however, acknowledges those risks but downplays their possible effects. CoinShares defended Tether’s solvency concerns, noting that it is among the most profitable companies in the industry, having made over $10 billion in profit in the first three quarters of 2025. This good performance continues to cement the financial stability of the company.

Tether Remains Resilient Despite Criticism

Tether, despite the controversies, dominates the stablecoin market with over $185 billion in circulation. Its market share is almost 59%, which makes it the most significant stablecoin by far. CEO of Tether, Paolo Ardoino, also countered S&P Global’s recent downgrade, calling the worries “Tether FUD,” a term that denotes fear, uncertainty, and doubt.

The S&P Global downgrade was based on Tether’s exposure to high-risk investments such as gold, Bitcoin, and loans. Critics have pointed to these assets as the source of the volatility concerns. Despite this, CoinShares still holds that Tether’s current data does not indicate any immediate threat to its $1 peg maintenance.

Tether recently ceased operations in Uruguay’s Bitcoin mining operations following failed negotiations with the national power provider. Additionally, the firm laid off 30 of its 38 staff after talks failed to end without progress.

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