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- Tether shifts reserves toward Bitcoin and gold ahead of expected rate cuts

- S&P flags weak stability due to higher exposure to volatile reserve assets

- Corporate holdings and Treasury profits strengthen Tether's broader balance sheet

Tether's (CRYPTO: $USDT ) latest reserve disclosures are prompting renewed attention across digital-asset markets after BitMEX co-founder Arthur Hayes disclosed the stablecoin issuer is positioning itself for an anticipated shift in U.S. monetary policy.

He noted that the company is preparing for a lower-rate environment by reallocating a portion of its holdings toward Bitcoin (CRYPTO: $BTC ) and gold (TVC: $GOLD ) rather than relying heavily on Treasury-linked returns.

Analysts Flag Potential Pressure on the Reserve Mix

Hayes cautioned that the strategy carries material risk. In a recent post on X, he claimed downturns in Bitcoin and gold could narrow Tether's equity buffer, reopening previous market debates about the resilience of USDT's backing.

https://x.com/CryptoHayes/status/1994915256150495652?s=20

His comments follow an assertion showing shifts within Tether's $181 billion asset base, which includes cash, T-bills, repo exposure, and money market instruments. Nearly $13 billion is allocated to precious metals, while Bitcoin holdings approach $10 billion. Secured loans now exceed $14 billion, alongside several smaller reserve segments.

S&P Global Ratings echoed concerns in a separate assessment, assigning a "weak" stability score after reviewing Tether's exposure to volatile assets. The agency stated that larger allocations to non-cash instruments could elevate the risk of undercollateralization during periods of market stress, drawing a notable response across the industry.

Corporate Holdings Offer Additional Financial Layers

Further discussion of the reserve data emerged from former Citi analyst Joseph, who said that Tether's public attestations cover only assets connected to USDT backing. He explained that a different corporate balance sheet includes equity stakes, mining operations, and additional Bitcoin reserves that are not reflected in the public reports. According to Joseph, the combination alters the company's overall financial position.

https://x.com/JosephA140/status/1994943733054542124?s=20

He added that interest-earning Treasuries, totaling about $120 billion, have generated roughly $10 billion in annual profit since 2023. Operating costs remain limited, resulting in what he described as efficient capital accumulation.

Based on this structure, his estimate of Tether's equity value spans from approximately $50 billion to $100 billion, though he said past reports suggesting a $20 billion raise at a 3% rate would indicate a valuation he regarded as unrealistic. Joseph also drew comparisons with traditional banks, noting that many institutions maintain only 5% to 15% of their deposits in liquid form and rely on central bank support systems.