Tether CEO Paolo Ardoino has strongly criticized S&P Global Ratings after the agency gave Tether's USDT stablecoin its lowest stability score. The rating, a "5 (weak)" on S&P's scale, was attributed to "persistent gaps in disclosure" and an increasing allocation to "high-risk assets" within Tether's reserves. These assets reportedly include Bitcoin, gold, secured loans, and corporate bonds.
Ardoino responded via social media platform X, stating that Tether would "wear your loathing with pride". He framed the rating as a failure of traditional finance to properly assess an overcapitalized cryptocurrency firm that operates without "toxic reserves" while maintaining profitability. He also criticized the "classical rating models," alleging they have historically misled investors into investing in companies that later collapsed despite high ratings. Ardoino suggested that traditional finance is threatened by companies like Tether that are attempting to operate outside of the established financial system.
S&P Global Ratings warned that price drops in Bitcoin and other riskier assets could diminish Tether's overcollateralization buffer. They also pointed to Tether's limited transparency regarding the financial stability of its custodians, counterparties, and banking partners. However, a significant portion of USDT's reserves is reportedly held in short-term U.S. Treasury bills and other dollar-denominated cash equivalents. S&P indicated that Tether's rating could improve by reducing its exposure to high-risk assets and providing clearer information about its reserves and partners.
The Tether Group's total assets at the end of Q3 2025 were approximately $215 billion, with stablecoin liabilities of around $184.5 billion, according to Ardoino. He stated that Tether had roughly $7 billion in excess equity, in addition to the stablecoin reserves, and about $23 billion in retained earnings as part of the Tether Group equity. Ardoino claimed S&P did not consider the additional group equity or the approximately $500 million in monthly base profits generated by US Treasury yields alone.
The CEO's comments also addressed concerns and "FUD" (fear, uncertainty, and doubt) spread by some analysts and influencers. Some analysts have debated Tether's balance sheet fundamentals, including speculation that Tether is buying large quantities of gold and BTC to offset income shortfalls from falling U.S. Treasury yields.
Despite the criticisms and concerns, USDT remains the largest stablecoin, with a market capitalization of $184 billion. Tether has emphasized that USDT has never failed a redemption, even during crises, and continues to process billions in volume daily across major exchanges and DeFi platforms. The company also highlighted its $135 billion in Treasury exposure, ranking it among the top global holders, and cited over $13 billion in profit in 2024 and $10 billion year-to-date in 2025 as evidence of its financial strength. Furthermore, Tether has underscored USDT's role as financial infrastructure in emerging markets like Türkiye and Nigeria.
