Arthur Hayes: If Tether holds illiquid assets, an unexpected event could raise questions about over-collateralization.

According to Odaily Planet Daily, in response to Tether CEO Paolo Ardoino's disclosure that the company's holdings of US Treasury bonds generate approximately $500 million in profit per month, Arthur Hayes posted on the X platform, stating that while Tether's profits are high, it's unclear whether there's a specific dividend policy or a target over-collateralization ratio set based on asset type and volatility. If Tether's liabilities are in US dollars and its assets are US Treasury bonds, there's generally not a major issue; however, if Tether's assets are illiquid private investments, the market may question Tether's over-collateralization should an unforeseen event occur.