CoinShares has downplayed recent concerns over the stability of Tether (USDT) following comments from former BitMEX CEO Arthur Hayes. Hayes has warned that Tether’s large positions in Bitcoin and gold could leave the stablecoin vulnerable if markets moved sharply, possibly putting its reserves under pressure and raising solvency questions.

Hayes said Tether appears to be making a big interest-rate bet and the latest audit shows the company expects the Federal Reserve to cut rates, which would reduce the interest income Tether earns on its reserves. To prepare for that, he says Tether is buying gold and Bitcoin, assets that could rise if borrowing costs fall.

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