CoinShares research head says Tether liquidity concerns are exaggerated

Recent concerns over Tether's solvency are somewhat exaggerated, according to James Butterfill, head of research at digital asset management firm CoinShares. In a report cited by Cointelegraph, Butterfill explained that Tether currently holds $181.4 billion in reserves against liabilities of approximately $174.4 billion, maintaining a surplus capital of $6.8 billion. He also noted that Tether generated over $10 billion in net profit during the first three quarters of this year. While stablecoin risks cannot be entirely dismissed, Butterfill argued that the current figures do not suggest a systemic risk. This assessment follows a recent analysis by BitMEX co-founder Arthur Hayes, who stated that a 30% decline in the value of Tether's gold and BTC positions would completely wipe out the company's equity.