In an uproar, ex-Citi analyst calls Arthur Hayes’ claims about Tether baseless!

Jakarta, Pintu News – A former head of crypto research at Citi recently debunked Arthur Hayes’ claims regarding Tether’s insolvency, revealing that Tether has undisclosed corporate assets and large profits not visible in its public reserves. This in-depth analysis suggests that Tether (USDT) may be much more robust and profitable than many critics thought.

The Power Behind Tether Backup

Joseph, a former analyst who has spent hundreds of hours researching Tether at Citi, asserts that what Tether publishes as their reserves is not a complete picture of the company’s balance sheet. According to him, the “matching” philosophy used by Tether only aims to show how USDT is backed, not the total assets held by the company.

These include equity investments, mining operations, additional reserves, and likely more Bitcoin (BTC) than publicly disclosed. Joseph also highlighted that these unexpected profits were paid out as dividends, an aspect that many market observers often miss.

Tether as an Efficient Money Machine

With interest rates rising, Tether has become highly profitable, managing around $120 billion in Treasuries that generate around 4% or nearly $10 billion in annual profits. Joseph described Tether as “one of the most efficient cash-generating businesses in the world,” with only about 150 staff.

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From this analysis, he estimates Tether’s equity could be worth between $50 billion and $100 billion. The company has even explored a $20 billion fundraising for a 3% stake, which shows the high valuation may still be too high, but still confirms the huge value the business has.

Tether’s Liquidity is Stronger than Most Banks

In contrast to Hayes’ claim that Tether could be wiped out if Bitcoin and gold drop 30%, Joseph argues that Tether is much better at collateralization than most banks.

Banks generally only keep 5-15% of their deposits in liquid assets, whereas Tether has much better collateral. Although Tether does not have central bank backing, their balance sheet strength is considered sufficient to fill the void.

Conclusion

With the evidence and analysis presented by Joseph, the crypto community may need to reconsider their views on Tether. Not only is Tether facing an insolvency crisis, it is operating as one of the most profitable entities in the crypto sector with financial backing that is far greater than reported.

FAQ

What is Tether’s “matching” philosophy?

Tether’s “matching” philosophy aims to show how USDT is backed by reserves, not to show all the assets held by the company.

How much annual profit does Tether make from Treasury?

Tether generates nearly $10 billion in annual profits from the Treasuries they manage, with an interest rate of around 4%.

How much is Tether’s equity worth according to Joseph’s analysis?

According to Joseph’s analysis, Tether’s equity value could range from $50 billion to $100 billion.

How does Tether compare to banks in terms of liquidity?

Tether is much better collateralized than most banks, which typically only hold 5-15% of their deposits in liquid assets.

Is Tether facing an insolvency crisis?

Based on recent analysis, Tether is not facing an insolvency crisis and is instead operating as one of the most profitable entities in the crypto sector.

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Reference

• Coinpedia. Former Citi Analyst Refutes Arthur Hayes Tether Insolvency Claims. Accessed on December 2, 2025
• Featured Image: Unchained Crypto