Odaily News Arthur Hayes stated on the X platform that Tether is in the early stages of large-scale interest rate trading. Tether believes that the Fed will lower interest rates, which will reduce its interest income, hence buying gold and BTC as a countermeasure. If gold and BTC holdings fall by about 30%, it will deplete its equity, and theoretically, USDT will face the risk of insolvency.
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Arthur Hayes: If Tether's gold Bitcoin holdings fall by about 30%, theoretically, USDT will be insolvent.
Odaily News Arthur Hayes stated on the X platform that Tether is in the early stages of large-scale interest rate trading. Tether believes that the Fed will lower interest rates, which will reduce its interest income, hence buying gold and BTC as a countermeasure. If gold and BTC holdings fall by about 30%, it will deplete its equity, and theoretically, USDT will face the risk of insolvency.