Former Citibank Head of Crypto Research: Arthur Hayes Missed 3 Key Points About Tether's Fud

According to Odaily Planet Daily, in response to Arthur Hayes' questions about the operation of USDT, Joseph, former head of crypto research at Citibank, posted on the X platform that @CryptoHayes' analysis missed several key points:

1. Disclosing assets ≠ all corporate assets

USDT discloses its reserves using a "matching principle," but its undisclosed balance sheet includes equity investment income, mining operations, corporate reserves, and potential Bitcoin holdings, with remaining profits distributed to shareholders as dividends.

2. Extremely high profit margins and equity value

Tether holds $120 billion in U.S. Treasury bonds (with an annualized yield of 4%) and is projected to generate approximately $10 billion in annual net profit starting in 2023 (with only 150 employees), making it arguably the world's most efficient money-printing machine.

The equity valuation may reach US$500-1000 billion (the company recently planned to raise US$200 billion by selling 3% of its equity, which is an inflated valuation but the company is very strong).

3. Comparative Advantages of Bank-Level Reserves

Traditional banks maintain only 5-15% of their assets in liquidity, while USDT's collateral ratio is clearly higher.

Key difference: Banks have the support of central banks as lenders of last resort, while USDT relies on the liquidity of its own assets.

Conclusion: Tether will not collapse; on the contrary, it controls the most powerful profit engine in the crypto world.

Subsequently, Tether CEO Paolo Ardoino expressed his gratitude for the support in the comments section.