Arthur Hayes: If Tether holds illiquid assets, an unexpected event could trigger concerns about over-collateralization
In response to Tether CEO Paolo Ardoino's disclosure that the company holds U.S. Treasury bonds generating about $500 million in profit each month, 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 or if target over-collateralization rates are set based on asset types and their volatility."If Tether's liabilities are in dollars and its assets are U.S. Treasury bonds, then there is basically no major issue; however, if Tether's assets are illiquid private investments, then in the event of an unexpected situation, the market will be skeptical about Tether's over-collateralization."
