Home / Business and Economy / Tether Defies S&P, Calls Traditional Finance Broken
Tether Defies S&P, Calls Traditional Finance Broken
2 Dec, 2025
Summary
- S&P Global downgraded Tether's stablecoin rating due to reserve opacity.
- Bitcoin now constitutes over 5% of USDT reserves, raising undercapitalization concerns.
- Tether CEO labels traditional finance broken, highlighting company's profitability.
Tether's USDT stablecoin is once again the subject of intense scrutiny from traditional finance circles. Recently, S&P Global downgraded Tether's rating to its weakest level, citing concerns over reserve opacity and the growing proportion of Bitcoin within its reserves. This development has reignited discussions about potential undercapitalization, especially with continued declines in Bitcoin's price.
Despite these criticisms, Tether continues to demonstrate remarkable profitability, raking in over $10 billion in the first nine months of 2025. Tether CEO Paolo Ardoino has defiantly responded to the S&P downgrade, asserting that the traditional financial system is fundamentally broken and that Tether is a proof of concept for a healthier alternative.
Industry observers, like angel investor Jason Calacanis, have offered advice, suggesting Tether sell its Bitcoin, focus solely on U.S. treasuries, and obtain multiple audits from American firms. These suggestions highlight ongoing debates about the stability and transparency of stablecoins within the broader financial landscape.
