Tag: Issuer

Arthur Hayes Claims Tether Is at Major Risk, Crypto Backs USDT Issuer

Key Notes Arthur Hayes warned that Tether’s exposure to Bitcoin and gold increases the risk of a liquidity crunch. Analysts show Tether has over $181B in assets but only $140B in instantly liquid reserves. Former Citi Research lead Joseph argues Tether is far stronger than critics believe. BitMEX co-founder Arthur Hayes said that the world’s largest stablecoin issuer, Tether, is preparing for a Federal Reserve rate‑cut cycle. He is concerned that as Tether increases its exposure to Bitcoin and gold, it also increases the chance that a sharp pullback in…

Why Tether Looks More Like a Central Bank Than a Stablecoin Issuer

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Key takeaways Tether operates a Treasury- and repo-heavy balance sheet, holding $181.2 billion in reserves against $174.5 billion in liabilities, leaving $6.8 billion in excess. High interest rates have turned those reserves into profit, generating more than $10 billion in interest income so far in 2025, which is uncommon for a typical crypto issuer. It exercises policy-style levers by freezing sanctioned wallets, shifting supported blockchains and allocating up to 15% of profits to Bitcoin. The central bank comparison has limits. Tether has no public mandate or backstop, relies on attestations…

USDT Issuer Tether’s Bitcoin (BTC) Holdings Rise to Nearly $10B as Big Profits Continue

Tether USDT$0.9996, the issuer of the world’s largest stablecoin, said on Friday its net profits surpassed $10 billion for this year as its flagship token swelled to a $174 billion market cap in the third quarter of 2025. According to the firm’s latest attestation signed by accounting firm BDO Italy, the company ended the quarter with $6.8 billion in excess reserves, maintaining a buffer over its $174.4 billion in liabilities tied to USDT. “With its all-time high exposure to U.S. Treasuries, now amounting to $135 billion, it positions our company…

USDC Stablecoin Issuer Circle Examines ‘Reversible’ Blockchain Transactions

Circle, the world’s second-largest stablecoin issuer, is reportedly examining reversible transactions to help recover funds from fraud and hacks, which appears to counter one of crypto’s founding principles: That transactions are final and beyond centralized control. Circle president Heath Tarbert told the Financial Times on Thursday that the company is examining mechanisms that could allow transactions to be rolled back in cases of fraud or hacks, while still maintaining settlement finality. “We are thinking through [. . .] whether or not there’s the possibility of reversibility of transactions, right, but at the same time,…

YZi Labs Deepens Stake in Stablecoin Issuer Ethena

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Tech-focused venture capital firm YZi Labs has increased its stake in Ethena, the stablecoin issuer behind USDe, which will assist the digital dollar’s adoption across decentralized and centralized platforms. The investment will assist Ethena USDe’s (USDe) expansion on BNB Chain while enabling Ethena to continue building its USDtb stablecoin and an institutional settlement layer, “Converge,” Changpeng Zhao’s YZi Labs said in a statement on Friday. USDtb is backed by short-duration treasury assets, including BlackRock’s BUIDL, while Converge is an Ethereum Virtual Machine-compatible chain focused on tokenizing real-world assets. The move…

Validators prepare to pick stablecoin issuer

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One week after opening a contest to decide the issuer of its first native stablecoin, USDH, Hyperliquid is preparing for a validator vote on Sunday to select the winner in what has quickly become one of the industry’s most closely watched community decisions. Hyperliquid, a decentralized exchange for perpetual futures that launched its own layer-1 in November 2024, handled $330 billion in trading volume in July with a team of 11 people. USDH will serve as the platform’s first dollar-pegged asset, providing traders with a stable unit of account and…

USDT Stablecoin Issuer Tether Diverts Crypto Profits to Gold

Key Notes Tether’s pivot to gold comes amid strong market performance, with gold gaining 37% year-to-date in 2025 compared to Bitcoin’s 22%. Company CTO Paolo Ardoino’s view of gold as a “natural Bitcoin” and a complementary asset. Tether already holds $8.7 billion in gold bars and has acquired a $105 million minority stake in Toronto-listed Elemental Altus. USDT USDT $1.00 24h volatility: 0.0% Market cap: $168.34 B Vol. 24h: $78.21 B stablecoin issuer Tether is currently exploring fresh investments in gold mining companies, with plans to divert its massive crypto…

$11.8 Billion Stablecoin Issuer Says XRP Is Ready For Integration And Onboarding

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XRP is now on the verge of being integrated into the backing of USDe, the $11.8-billion stablecoin issued by Ethena Labs. The company’s risk committee recently confirmed that XRP has passed all thresholds required under its newly launched Eligible Asset Framework, which puts it alongside BNB and HYPE as top candidates for onboarding.  XRP’s massive liquidity, its market capitalization of over $181 billion, and daily trading volumes comfortably above $10 billion now see it ready to take on a new role in the USDe ecosystem. Related Reading Ethena’s Eligible Asset…

USDC Issuer Circle Introduces New Layer-1 Blockchain Arc

Circle, a publicly traded US company and the issuer of USDC stablecoin, said it will launch its own layer-1 (L1) blockchain compatible with the Ethereum Virtual Machine (EVM) later this year. The company released its second-quarter results on Tuesday and announced the introduction of Arc, a new network designed to offer an “enterprise-grade foundation” for stablecoin payments, foreign exchange and capital markets applications. Expected to launch in public testnet this fall, Circle’s Arc will feature USDC (USDC) as its native gas token, enabling users to pay transaction fees on the…

NYDFS Fines Stablecoin Issuer Paxos $26.5M for Compliance Failures Tied to Binance’s BUSD

New York’s top financial regulator has fined Paxos, a New York City-based stablecoin issuer, $26.5 million for “systemic failures” in its compliance and anti-money laundering programs, including a past partnership with global crypto exchange Binance, according to a Thursday announcement. In addition to the fine, Paxos agreed to spend another $22 million improving its compliance program to bring it up to snuff with the New York Department of Financial Services’ (NYDFS) standards. “The Department of Financial Services has led the nation in regulating the virtual currency industry, protecting consumers and…