Tether, the leading stablecoin issuer, recently disclosed substantial holdings of U.S. Treasury bonds worth $135 billion, generating consistent profits estimated at over $500 million monthly. This disclosure fueled debate about Tether’s transparency and the stability of its reserves. Key figure Arthur Hayes, former co-founder of BitMEX, raised concerns about the lack of formal policies or benchmarks regarding asset liquidity, especially if Tether’s assets are comprised of illiquid investments instead of U.S. Treasuries. 🤯 ‘If Tether’s liability is in USD and its assets are U.S. Treasury bonds, then there is basically no major issue; however, if Tether’s assets are illiquid private investments, once an accident occurs the market will have doubts about Tether’s overcollateralization,’ Hayes asserted.