Tether Faces Renewed Financial Controversy: Is $6.8 Billion in Surplus Enough to Support Its $180 Billion Stablecoin Empire?

Question

[BlockBeats] Recently, debates about Tether’s financial security have flared up again. Arthur Hayes, founder of a leading exchange, put forward the view that if the stablecoin giant’s reserve assets shrink, it could cause big problems. However, James Butterfill, Head of Research at CoinShares, disagrees.

In his latest market report, Butterfill directly pushed back, saying these concerns are “completely unfounded.” He cited data from Tether’s recent audit report: reserve assets of $181 billion, liabilities of $174.45 billion, and a net surplus of about $6.8 billion. “Of course, stablecoin risks can’t be ignored entirely, but based on current data, there’s no sign of any systemic holes.”

To be honest, Tether’s earning power is indeed impressive right now. In the first three quarters of this year alone, it generated $10 billion in profit, making it one of the most profitable players in the industry. With the data laid out like this, which side should you believe?

NotAFinancialAdvice · Accepted Answer

You think you can stabilize an $180 billion portfolio with just a $6.8 billion buffer? Feels like they're throwing out that number just to scare people...

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USDT is flexing its muscles again, making $10 billion in profit in a single quarter. This kind of money-sucking ability is just insane.

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If Hayes says there’s risk, I believe him. Even when Butterfill says there’s no problem, I still have to question it. Either way, I don’t dare to go all in.

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A net surplus of $6.8 billion sounds like a lot, but compared to a $180 billion portfolio, it’s just a fuse. If there’s a flash crash, it could break down in minutes.

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This whole debate is like two people arguing over whether the Titanic has enough lifeboats... kind of hilarious.

Frontrunner · Answer

Is a surplus of 6.8 billion really enough? I can't shake the feeling that this number is hinting at something...

DefiEngineerJack · Answer

tbh the $68B buffer sounds reassuring on paper, but has anyone actually done a formal verification on their reserve composition? like, *technically speaking* the audit doesn't tell you where those assets are parked... could be in some sketchy lending protocol for all we know

AirdropDreamer · Answer

6.8 billion buffer sounds pretty scary, I wouldn't dare to go all in...

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Isn't Hayes overreacting this time? The data is right here.

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Tether is making that much? Damn, this is the real money printer.

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"Systemic hole" sounds nice, but who can guarantee it won't blow up the next second?

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10 billion in profits... How many people are working for Tether?

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I'm a bit tired from reading the audit report, I just want to know if the money is actually there or not.

ContractTester · Answer

Is an $6.8 billion buffer really enough for an $180 billion scale... It still feels a bit risky.

Maybe Hayes is overthinking it this time, but with Tether being so massive, anyone would be cautious.

A $10 billion profit is indeed impressive, but the key issue is still the authenticity of the reserves... This will always be a question mark.

The net surplus looks substantial, but can it withstand liquidity pressure when it comes?

At the end of the day, it’s a matter of confidence—no matter how good the numbers look, if no one believes them, it’s all for nothing.

AirdropHunterWang · Answer

Is 6.8 billion in reserves really enough? To be honest, I'm still a bit nervous.