Joseph says Tether’s balance sheet is stronger than it looks.
Tether earns billions annually from Treasury holdings.
Equity and mining assets could cover any reserve shortfalls.
Former Citi crypto research head Joseph has weighed in on the recent critique of Tether by Arthur Hayes, offering a firm defense of the stablecoin issuer’s financial health. In response to Hayes’ concerns about Tether’s reserve disclosures, Joseph argued that focusing only on disclosed reserves doesn’t show the complete picture of Tether’s corporate balance sheet.
He highlighted that Tether owns far more than just the assets backing its USDT stablecoin. The company holds significant equity, investments in Bitcoin mining operations, and other valuable assets that contribute to its overall strength.
Billions in Profit From Treasury Holdings
One of Joseph’s key points is that Tether earns billions of dollars each year from its holdings in U.S. Treasuries, thanks to the interest rates on those government bonds. These steady income streams make Tether highly profitable and capable of maintaining strong financial stability.
Because of this, Joseph argues that the company is not dependent solely on its cash reserves. Even if there were a temporary gap in reserves, Tether could easily sell equity or liquidate other holdings to cover it—making the idea of insolvency highly unlikely.
Former Citi crypto research lead Joseph responded to Arthur Hayes’ Tether critique, arguing that Tether’s disclosed reserves don’t represent its full corporate balance sheet and that the company also holds significant equity, mining operations, and other assets. He said Tether is…
— Wu Blockchain (@WuBlockchain) December 1, 2025
Hayes vs Joseph: A Matter of Transparency?
Arthur Hayes, BitMEX co-founder, had expressed concerns over Tether’s reserve transparency and the risk of a bank run. But Joseph counters that such fears overlook Tether’s broader asset base and its ability to raise funds if needed.
While the debate highlights the ongoing demand for transparency in the stablecoin market, Joseph’s response points to a larger, more diversified Tether—one that may be far more stable than critics assume.
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