Joseph Responds to Arthur Hayes' Concerns About USDT Operations

According to Odaily, former Citibank crypto research head Joseph addressed concerns raised by Arthur Hayes regarding USDT operations on the X platform. Joseph highlighted several key points that were overlooked in Hayes' analysis. Firstly, Joseph noted that asset disclosure does not equate to the entirety of corporate assets. USDT uses a 'matching principle' to disclose reserves, but its undisclosed balance sheet includes equity investment returns, mining operations, company reserves, and potential Bitcoin holdings. Remaining profits are distributed to shareholders as dividends. Secondly, Joseph pointed out the exceptionally high profit margins and equity value of Tether. With $120 billion in U.S. Treasury bonds yielding an annualized 4% return, Tether's annual net profit since 2023 is approximately $10 billion, managed by only 150 employees. This efficiency positions it as one of the world's most effective money-making entities. The equity valuation could reach $50-100 billion, with recent plans to raise $20 billion by selling 3% equity, indicating a strong yet potentially overvalued position. Thirdly, Joseph compared Tether's bank-grade reserve advantage. Traditional banks maintain only 5-15% liquid assets, whereas USDT's collateralization rate is significantly higher. The key difference is that banks have central banks as lenders of last resort, while USDT relies on its asset liquidity. In conclusion, Joseph argued that Tether is not at risk of collapse but rather controls one of the most powerful profit engines in the crypto world. Tether CEO Paolo Ardoino expressed gratitude for Joseph's support in the comments section.