CoinShares Challenges Tether Solvency Criticisms
- CoinShares’ James Butterfill addresses Tether solvency concerns with evidence.
- Arthur Hayes and S&P critique Tether’s reserves.
- Butterfill highlights Tether’s substantial reserve surplus.
CoinShares Head of Research James Butterfill has challenged criticisms about Tether’s (USDT) solvency and stability, offering a detailed response in a CoinShares research note.
His rebuttal, focusing on reserve data, highlights the ongoing debate’s impact on Tether’s market perception and broader concerns about stablecoin stability.
Analysis of Tether’s Solvency
James Butterfill, Head of Research at CoinShares , countered recent critiques of Tether’s solvency. His responses followed challenges from Arthur Hayes and S&P Global , focusing on asset reserves and Bitcoin exposure. Butterfill presented data from Tether’s reserve attestations , citing a surplus of US$6.78 billion. Critiques call attention to potential risks from Tether’s reserve composition. Hayes had highlighted the growing risk in Tether’s profile.
Butterfill’s rebuttal emphasized Tether’s solid financial footing. This comes amid concerns regarding Tether’s increasing reliance on Bitcoin. Institutional investors continue to pour money into major digital assets, showing confidence in crypto infrastructure. The downgrade by S&P was noted, but Butterfill assured the stability of Tether’s reserves. His analysis suggests market confidence remains, evidenced by persistent asset inflows, contrary to fears of systemic risk.
Despite concerns, Bitcoin and Ethereum see substantial inflows, illustrating market resilience. XRP reached record inflows , reflecting varied sentiment in altcoin markets. Butterfill suggests that despite some reserve risks, Tether remains stable. His analysis indicates potential impacts on DeFi and institutional participation. Historical trends on global liquidity are noted, influencing Tether’s position.
“Concerns about Tether solvency also reappeared in market commentary, although these fears look misplaced.” — James Butterfill, Head of Research, CoinShares
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
The ZK Atlas Enhancement and Its Impact on Blockchain Scalability
- ZKsync's October 2025 Atlas Upgrade achieves 15,000–43,000 TPS with $0.0001 fees, enhancing Ethereum's L2 scalability via ZK proofs. - Institutional adoption by Deutsche Bank/UBS and $3.5B TVL validate ZK-based L2s as infrastructure for DeFi and real-time settlements. - Upcoming Fusaka upgrade (Dec 3, 2025) aims to double throughput, positioning ZKsync to outpace competitors with 60.7% CAGR growth projections. - $ZK token's $0.28/2025 and $1.32/2030 price targets reflect deflationary mechanics and $15B B
The Influence of ZK-Sync Integration on the Development of Ethereum’s Layer 2 Landscape and Scaling Approaches
- Vitalik Buterin's endorsement of ZK-Sync's Atlas upgrade highlights its role in Ethereum's scalability solutions, boosting its token price by 120%. - ZK-Sync's ZK-rollup architecture offers trustless security and cost efficiency, attracting enterprises like Deutsche Bank for real-world asset tokenization. - The ZK Layer 2 market is projected to grow at 60.7% CAGR by 2031, with ZK-Sync competing against Arbitrum and Optimism for TVL dominance.
The Rapid Rise of DASH: Uncovering the Factors Behind This Week's Rally
- Dash (DASH) experienced a 7-day rally with 50% higher transaction volume despite 39% price decline, highlighting volume-price divergence. - 77% opaque transactions and whale activity patterns suggest potential speculative accumulation or manipulation amid privacy coin interest. - Technical indicators show bullish momentum with $84 buy zone, while analysts predict 100x price potential driven by privacy demand. - Cross-market confusion with DoorDash stock and regulatory risks create mixed sentiment, emphas
Zcash Halving and Its Impact on the Market: Supply Disruptions and Investor Attitudes in the Aftermath of Halving
- Zcash's 2025 halving cut block rewards by 50%, reducing annual inflation to 2% and reigniting debates on its privacy-focused role. - Institutional adoption grows with $151.6M Grayscale Trust and Zcash ETF proposals, balancing privacy with regulatory compliance. - Post-halving volatility saw ZEC surge 1,172% then plummet 96% in 16 days, exposing liquidity risks in its $10.3B market cap. - 70% of ZEC transactions now use shielded pools, but EU MiCA regulations and concentrated ownership create adoption unc
Trending news
MoreCrypto prices
More
