Tether (USDT) Faces Scrutiny as ~$500M Monthly Profit From U.S. Treasuries Raises Questions on Overcollateralization and Dividend Policy

COINOTAG News, December 1st, reported that Tether CEO Paolo Ardoino disclosed holdings in U.S. Treasury bonds capable of generating approximately $500 million in monthly profit. This underscores a conservative, high-liquidity asset mix for the world’s largest stablecoin issuer, potentially supporting tight liquidity conditions in stressed markets.

Former BitMEX CEO Arthur Hayes responded on X, noting that while profits appear substantial, there is no clear dividend policy disclosed, nor explicit overcollateralization targets calibrated to asset type and volatility. He warned that if Tether’s assets shift toward illiquid private investments, stress could cast doubt on sustained collateral quality.

Market participants should monitor the company’s capital structure, risk management, and regulatory disclosures as part of assessing counterparty risk in the stablecoin sector. The episode underscores the importance of transparency in USDT reserves and the linkage between asset quality, liquidity, and investor confidence in digital assets.