Why did S&P Global downgrade Tether's rating?

S&P Global downgraded Tether due to concerns about the opacity of its reserve reporting and Bitcoin's increasing share in those reserves.

What are the concerns about Tether's reserves?

Concerns include the lack of transparency in reserve holdings and the potential for undercapitalization if Bitcoin's value declines significantly.

What is Tether CEO Paolo Ardoino's response to criticism?

Tether CEO Paolo Ardoino defends the company, calling the traditional financial system broken and asserting Tether is overcapitalized and profitable.

Home / Business and Economy / Tether Defies S&P, Calls Traditional Finance Broken

Tether Defies S&P, Calls Traditional Finance Broken

2 Dec

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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 Defies S&P, Calls Traditional Finance Broken

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.