Arthur Hayes: If Tether holds illiquid assets, any unexpected event could trigger doubts about its over-collateralization

Jinse Finance reported that in response to Tether CEO Paolo Ardoino revealing that the company generates approximately $500 million in monthly profit from holding U.S. Treasury bonds, Arthur Hayes commented on X that while Tether's profits are high, it is unclear whether there is a specific dividend policy or if a target over-collateralization ratio is set based on asset type and its volatility. If Tether's liabilities are in USD and its assets are U.S. Treasury bonds, there is basically no major issue; however, if Tether's assets are less liquid private investments, then in the event of an unexpected situation, the market may question Tether's over-collateralization.