Arthur Hayes: If Tether holds illiquid assets, any mishap could trigger questions about overcollateralization

By: theblockbeats.news|2025/12/01 14:45:56
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BlockBeats News, December 1st: In response to Tether CEO Paolo Ardoino's disclosure that the company holds U.S. Treasury bonds that can generate approximately $500 million in monthly profit, Arthur Hayes posted on the X platform stating that while Tether's profits are high, it is uncertain whether there is a specific dividend policy in place, or if an overcollateralization ratio is set based on asset type and volatility targets.

“If Tether's liability is in USD and its assets are U.S. Treasury bonds, then there is basically no major issue; however, if Tether's assets are illiquid private investments, once an accident occurs, the market will have doubts about Tether's overcollateralization.”

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