Tether CEO Criticizes S&P Ratings Agency and Influencers After USDt Downgrade

Tether CEO Paolo Ardoino has pushed back against S&P Global's recent downgrade of USDt's ability to maintain its peg to the US dollar. He argues that the ratings agency overlooked significant assets and revenues of Tether. Analysts express varied opinions regarding Tether's financial health, with some expressing concerns about potential risks.

Key Takeaways

Tether CEO Paolo Ardoino criticizes S&P Global for downgrading USDt's dollar-peg rating.
Ardoino claims that S&P did not fully acknowledge Tether's total assets or revenue streams.
Analysts are divided on Tether's financial stability, with some suggesting risks tied to its investment strategies.

Main Content

Tether's CEO, Paolo Ardoino, alongside market analysts, responded to S&P Global’s downgraded rating concerning USDt's capacity to maintain its US dollar peg. Ardoino emphasizes that the ratings agency failed to consider all of Tether’s assets and earnings.

At the close of the third quarter of 2025, Tether Group reported total assets of around $215 billion, while its total liabilities in stablecoins approached $184.5 billion, as noted in Ardoino's reference to Tether’s Q3 attestation report. He stated, “S&P made the same mistake of not considering the additional Group Equity, nor the roughly $500 million in monthly base profits generated by US Treasury yields alone.”

Tether, Stablecoin, FUD Source: Paolo Ardoino

On Wednesday, S&P Global downgraded USDt’s dollar-peg rating to "weak," the lowest rating on its scale, leading to concerns and skepticism from various analysts regarding Tether, which plays a crucial role in the cryptocurrency market ecosystem.

Discussions on Tether's Financial Structure

Market analyst Arthur Hayes, founder of the BitMEX crypto exchange, speculated that Tether might be accumulating substantial amounts of gold and Bitcoin to offset income losses due to declining US Treasury yields. He believes that with the Federal Reserve lowering interest rates, the values of gold and Bitcoin should rise. However, he cautioned that a significant decrease in the value of these assets could pose serious problems for Tether. “A roughly 30% decline in the gold and BTC position would wipe out their equity, and then USDt would be, in theory, insolvent,” he noted.

Tether, Stablecoin, FUD Source: Arthur Hayes

Joseph Ayoub, the former lead digital asset analyst at Citi, commented on Hayes’ assessment, stating that he spent extensive hours researching Tether during his tenure with the company. Ayoub rejected Hayes’ concerns, asserting that Tether possesses excess assets beyond what it discloses, operates a highly profitable business that generates billions in interest income with a small workforce of about 150 employees, and maintains better collateralization than traditional banking institutions.

[Magazine: GENIUS Act Reopens the Door for a Meta Stablecoin, but Will It Work?]