• S&P International downgraded Tether’s USDT to its lowest score, 5, citing excessive publicity to riskier reserves and restricted transparency/disclosure
  • S&P expressed concern that the riskier property and poor disclosure might weaken USDT’s potential to keep up its value peg beneath future market stress.
  • Tether CEO Paolo Ardoino strongly disagreed with the downgrade, citing the agency’s Q3 2025 attestation exhibiting $215 billion in whole property towards $184.5 billion in liabilities, together with $7 billion in extra fairness.

Tether is as soon as once more battling “TetherFUD”, because it’s recognized in the neighborhood, and this time it has a heavy contender. 

Just lately, S&P International downgraded Tether from “4 (constrained)” to “5 (weak),” its lowest rating, citing rising publicity to higher-risk property in reserves and “persistent gaps in disclosure.” 

The company flagged Bitcoin, gold, secured loans, company bonds and different investments as carrying credit score, market, rate of interest and FX danger, and acknowledged that Tether gives “restricted info” on custodians and counterparties to buyers.

Nonetheless, Tether CEO Paolo Ardoino, citing the issuer’s Q3 2025 attestation report, mentioned the Tether Group held roughly US$215 billion (AU$328.95 billion) in whole property towards about US$184.5 billion (AU$282.285 billion) in stablecoin liabilities. He mentioned this included round US$7 billion (AU$10.71 billion) in extra fairness and about US$23 billion (AU$35.19 billion) in retained earnings.

Learn extra: Australia Targets $24B Boost With Tough New Crypto Crackdown

Ardoino Fires Again at S&P

Ardoino didn’t cease there. He claimed S&P did not account for this fairness cushion and for roughly US$500 million (AU$765 million) in month-to-month income generated primarily from US Treasury yields. General, Tether mentioned it “strongly disagrees” with S&P’s characterisation.

Apparently, although, S&P acknowledged USDT has proven “a notable degree of value stability” via intervals of crypto volatility, however mentioned the mix of riskier reserve property and restricted transparency “weakens its confidence within the token’s potential to carry its peg beneath stress”.

Effectively, Tether countered that USDT has processed “billions in redemptions” throughout market shocks with out shedding its peg and described the stablecoin as “systemically essential monetary infrastructure” in some rising markets, the place it’s used as a purposeful substitute for native foreign money.

Learn extra: Bitcoin Slump Reflects Trump’s Unpopularity, Renowned US Economist Claims

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