Arthur Hayes Questions Tether’s Solvency: Leading Crypto Analyst Asks Grok To Compare Stablecoin Issuer With Traditional Banks And Here’s What It Said

Well-known cryptocurrency analyst Willy Woo asked an AI agent to provide a comparative analysis of Tether’s (CRYPTO: USDT) asset backing versus a traditional bank, following concerns about the stablecoin issuer’s liquidity profile.

Questions Over Tether’s Solvency Arise

The conversation was sparked by BitMex co-founder Arthur Hayes’ initial X post, where he analyzed Tether’s third-quarter reserves attestation and called for a real-time view of its balance sheet to assess solvency risks.

Hayes said that a 30% decline in Tether’s gold and Bitcoin (CRYPTO: BTC) positions would wipe out its equity and theoretically render USDT, the world’s biggest stablecoin by market capitalization, insolvent.

Tether’s latest attestation report shows $181 billion in reserves backing its …

Full story available on Benzinga.com