Recently reignited discussions about Tether received a clear response from CoinShares Research Director James Butterfill.
Butterfill stated that the comments regarding the bankruptcy risk of Tether, raised by Arthur Hayes and S&P Global, were "taken too seriously by the market." Referring to Tether's latest report, Butterfill noted that the company has approximately $181 billion in reserves against $174.45 billion in liabilities, meaning it has about $6.8 billion in surplus. He mentioned that Tether, which earned $10 billion in profit in the first three quarters of 2025, is one of the most profitable companies in the sector.
Butterfill's assessment was not limited to Tether. The analyst noted that Japan has been at the center of the recent fluctuations in global markets, indicating that the increased stress in long-term Japanese government bonds is putting pressure on global liquidity. He mentioned that the weak demand observed in the 20-year JGB auction suggests that Japanese capital, which has kept global yield levels low for a long time, is now under pressure.
Butterfill, recalling that Japanese institutions have been channeling significant amounts of capital into U.S. bonds and equities for years, noted that even a portion of these funds returning could tighten global liquidity. He expressed that while this situation pressures risky assets, it could strengthen Bitcoin's narrative as an 'alternative store of value' in the long run.
Butterfill pointed out that weak employment data from the U.S. has also increased market fragility, stating that the -32,000 job decline has made an interest rate cut more likely in December, but financial conditions are still tight. This tightness has been among the factors triggering the recent pullback in crypto assets.
Butterfill also assessed the renewed discussions about bankruptcy related to Tether, arguing that current data does not indicate a risk. He stated that the company has a significant capital surplus and that the high-interest environment has increased its profits. However, he also argued that caution in the stablecoin space should not be completely set aside.
Stay tuned for new developments.
