Why Tether’s S&P Downgrade Is Just Another Blip in the Wild World of Crypto

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Tether, the puppet master behind USDT, the world’s biggest stablecoin, just got a slap on the wrist from S&P Global. This wasn’t a friendly tap on the shoulder, mind you. No, it was more like a grade-school “you failed” moment. Apparently, the agency has issues with Tether’s “persistent gaps in disclosure” and its growing stash of “high-risk assets.” Well, surprise, surprise! Tether isn’t exactly known for its open book policy, and its reserve assets-Bitcoin, gold, corporate bonds, secured loans-are looking more like a risky poker hand than a solid safety net. A little credit risk here, a touch of market risk there, and hey, who doesn’t like a good foreign exchange vulnerability on the side? 😏

Tether CEO Responds To S&P Downgrade

S&P Global, with its brand-new risk scale (fancy!), didn’t just drop a bombshell; it unveiled a whole new grading system for stablecoins in 2023. Apparently, Tether’s USDT now sits at a pathetic “5 (weak)”-the worst rating you can get. That’s down from its previous “4 (constrained).” S&P wasn’t thrilled with Tether’s lack of transparency, especially when it comes to the financial health of its custodians and counterparties. 🙄

But hold your horses, folks! Tether’s CEO, Paolo Ardoino, wasn’t about to let this slide. On X (formerly Twitter), he responded like a kid who just got told their dog ate their homework: “We wear your loathing with pride.” Ardoino went on to argue that S&P’s old-school methods just don’t cut it in the crypto world, where things are a little more… flexible. He’s all for the idea that Tether is a financial juggernaut-overcapitalized, and not hoarding “toxic reserves.” And hey, S&P’s methods are fine if you’re in the traditional finance world, dealing with old-school banks and their decades of “opaque financial histories,” but not in crypto, right? 😎

“The traditional finance propaganda machine is growing worried when any company tries to defy the force of gravity of the broken financial system. No company should dare to decouple itself from it.” 🙄

Largest Independent Gold Holder

After the downgrade, Tether fired back, denying S&P’s accusations like a teenager blaming their sibling for their mess. The company proudly pointed out how it had weathered the worst of financial crises-banking collapses, exchange failures, market dips-and still managed to keep its cool and redeem USDT. Sounds like Tether’s been through some serious roller-coaster rides, huh?

And just in case you thought they were lying low, Tether reminded us that it’s issued a whopping $184 billion worth of USDT. So don’t worry, folks. There are reserves-US Treasuries, among other things-sitting pretty to handle those redemptions. They’re good for it. 🙏

Oh, and did we mention Tether’s latest flex? According to the Financial Times, Tether is now the largest independent gold holder on the planet. Talk about stacking up on the shiny stuff! Tether bought a staggering 26 tons of gold in the last quarter-more than any central bank. By the way, that brings their total stash to nearly 120 tons of gold. Might as well call them the King Midas of stablecoins at this point. 🏅

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2025-11-27 04:00