James Butterfill, Head of Research at CoinShares, has dismissed concerns about Tether's solvency, describing them as "unfounded." According to Tether's latest financial report, the stablecoin issuer holds reserves of $181 billion against liabilities of approximately $174.45 billion, resulting in a surplus of nearly $6.8 billion. Butterfill acknowledged the inherent risks of stablecoins but emphasized that current data does not suggest any systemic vulnerability.
The statement comes amid renewed scrutiny of Tether's financial stability, following warnings from BitMEX founder Arthur Hayes. Hayes cautioned that Tether could encounter significant issues if the value of its reserve assets declines, sparking fresh debate over the company's financial health.
CoinShares Research Head Dismisses Tether Solvency Concerns
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