CoinShares Debunks Tether Collapse Fears After Hayes Warning: Why the Panic is Overblown
Another day, another crypto doomsday prediction. This time, it's Arthur Hayes sounding the alarm on Tether—and CoinShares is pushing back hard.
The Sky-Is-Falling Narrative
Hayes, never one to shy from a dramatic forecast, warned of a potential Tether collapse that could send shockwaves through the entire crypto ecosystem. The fear? A classic bank-run scenario hitting the world's largest stablecoin.
CoinShares Calls for Calm
Enter CoinShares. Their research team just published a takedown of the collapse thesis, methodically picking apart the core assumptions. They argue the systemic risks are massively overstated, pointing to Tether's reserves and market structure.
The report suggests the crypto market has matured beyond a single point of failure. It's a direct challenge to the perennial Tether FUD that surfaces every bull market—usually from folks who've missed the boat.
The Real Contagion Risk? Your Portfolio.
Let's be real. The biggest threat to most investors isn't a stablecoin implosion; it's their own emotional reaction to headlines designed to generate clicks, not clarity. Panic sells. Due diligence doesn't.
CoinShares' analysis cuts through the noise. It bypasses the hyperbole and lands on a simple, contrarian take: the foundations are stronger than the fearmongers claim. Maybe the only thing that needs stabilizing is some traders' nerves.
Tether CEO Counters Insolvency Claims with Financial Data
CEO Paolo Ardoino swiftly refuted Hayes’s assessment with detailed disclosures showing Tether Group’s total assets reach approximately $215 billion.
The executive explained that the company holds roughly $7 billion in excess equity on top of its stablecoin reserves, plus another $23 billion in retained earnings as part of Tether Group equity.
Bitcoin and gold represent just 12.6% of total reserves, with over 70% held in short-term U.S. Treasuries.
“S&P made the same mistake of not considering the additional Group Equity nor the ~$500M in monthly base profits generated by U.S Treasury yields alone,” Ardoino stated, suggesting critics are ““
re: Tether FUD
From latest attestation announcement (Q3 2025):
"Tether will continue to maintain a multi-billion-dollar excess reserve buffer and an overall proprietary Group equity approaching $30 billion."
Tether had (at end of Q3 2025) ~7B in excess equity (on top of the…
The company generated more than $10 billion in profit this year from interest income on reserve assets, making it one of the most efficient cash-generating businesses globally with just 150 employees.
His defense followed S&P Global’s November 26 downgrade of USDT’s peg-stability rating from 4 to 5, citing increased exposure to “high-risk” assets and “persistent gaps in disclosure.”
Ardoino responded defiantly, declaring, “” while positioning Tether as “the first overcapitalized company in the financial industry, with no toxic reserves.”
The rating action carries profound implications under MiCA regulations, which prohibit USDT from EU exchanges with a “5” rating, potentially shifting institutional liquidity toward competitors like Circle’s USDC.
Industry Veterans Challenge Hayes’s Fundamental Analysis
Joseph Ayoub, former head of digital asset research at Citi, noted Hayes overlooked critical distinctions between Tether’s disclosed reserves and total corporate holdings.
The analyst explained that Tether maintains a separate equity balance sheet comprising mining operations and corporate reserves that aren’t publicly reported under the company’s “” for reserve disclosure.
“Tether isn’t going insolvent, quite the opposite; they own a money printing machine,” Ayoub concluded, pointing to the company’s roughly $120 billion in interest-yielding Treasuries generating approximately 4% returns since 2023.
I spent 100’s of hours writing research on tether for @Citi. @CryptoHayes missed a few key points.
1) 𝐓𝐡𝐞𝐢𝐫 𝐝𝐢𝐬𝐜𝐥𝐨𝐬𝐞𝐝 𝐚𝐬𝐬𝐞𝐭𝐬 =/ 𝐚𝐥𝐥 𝐜𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐚𝐬𝐬𝐞𝐭𝐬
When tether generates $ they have a separate equity balance sheet which they don’t… https://t.co/pHSRr245Up
Banks operate on significantly lower fractional reserves of 5-15% in liquid assets compared to Tether’s overcollateralized structure. However, traditional institutions benefit from central bank lender-of-last-resort support that Tether lacks.
Hunter Horsley, CEO of Bitwise Invest, characterized Tether’s structure as “” while CryptoQuant CEO Ki Young Ju dismissed Hayes’s warning as motivated by trading position management.
Former FT Alphaville editor Izabella Kaminska offered a deeper structural analysis, suggesting Tether’s thick equity buffer and retained earnings model creates “a capital structure that looks a lot like the banking model academic Anat Admati advocates: much thicker equity buffers, far less leverage, and minimal maturity mismatch.“
Kaminska noted that if Tether’s depositor base proves willing to redeem directly in gold during stress situations, the metal becomes “the natural last-resort funding asset for its shadow/grey exposures and a hard-asset substitute for the lender-of-last-resort support that banks get from central banks.”
Analysts are overlooking how stablecoins that retain earnings (aka Tether) are evolving into something structurally unusual.
The reality is, as Tether’s retained earnings accumulate, they operate economically like a very thick equity buffer — far beyond the capitalisation… https://t.co/KXtsrG52kU
This cross-border redemption channel operates without dependence on synchronized regulatory frameworks.
The controversy emerges as Tether expands beyond stablecoin issuance into commodity trade lending, having deployed approximately $1.5 billion in credit across oil, cotton, wheat, and agricultural markets.
The company’s Q3 attestation showed USDT issuance increased by more than $17 billion during the quarter, lifting circulating supply above $174 billion, with October figures surpassing $183 billion.
