New fears over the stablecoin issuer’s reserves spark debate, but analysts argue current figures show no structural risk
Fresh scrutiny has surrounded Tether this week after renewed claims suggested the stablecoin issuer could face solvency issues if the value of its reserve assets declined sharply. But new analysis from CoinShares argues that these concerns overlook the company’s sizeable surplus and current financial position.
Tether’s Surplus Signals Strength, Not Distress
CoinShares’ head of research said recent worries are “misplaced,” pointing to the firm’s latest attestation showing $181 billion in reserves against $174.45 billion in liabilities. This leaves Tether with a surplus of nearly $6.8 billion, a buffer that analysts say contradicts the narrative of imminent vulnerability.
He noted that while stablecoin risks must always be monitored, current data do not indicate any systemic weakness in the company’s balance sheet.
Tether also remains one of the highest-earning firms in the digital asset sector, generating $10 billion in profit during the first three quarters of the year — a figure that stands out even among major financial companies.
Where the Latest Solvency Fears Originated
The renewed anxiety was driven largely by commentary from a high-profile industry figure who claimed Tether was “running a massive interest-rate trade.” He argued that a 30% decline in the value of its bitcoin and gold holdings could erase its equity, raising questions about USDt’s backing.
Those reserve components have grown in recent years, leading some critics to warn that volatility in non-cash assets could expose the issuer to directional market risk.
Tether is also facing pressure from rating agencies after a recent assessment highlighted its exposure to gold, loans and bitcoin, prompting a downgrade of USDt’s ability to defend its peg. The company dismissed the move as unfounded and pointed back to its third-quarter attestation.
Despite the criticism, USDt remains the largest stablecoin globally, with over $185 billion in circulation and a market share close to 59%.
For now, analysts argue that the available financial disclosures paint a picture of a company with significant capital strength, even as broader debates about stablecoin transparency continue.
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