Published 2 days ago • loading... • Updated 11 hours ago

S&P Cuts Tether Stablecoin Rating to 'Weak' on Disclosure Gaps

On Wednesday, S&P Global downgraded Tether's USDT to 5, its lowest stability score, while USDT remains dominant with a circulating supply of nearly $185 billion.
Amid rising allocations to risky assets, S&P noted an increase in bitcoin, gold, secured loans and corporate bonds in Tether's reserves over the past year and persistent disclosure gaps on custodians and counterparties.
Reserve filings and attestations indicate bitcoin now represents about 5.6% of USDT, exceeding the roughly 3.9% buffer in Tether's latest third-quarter attestation; short-term U.S. Treasuries dominate reserves but custodial and reserve governance practices lack basic protections.
S&P warned that undercollateralization is possible if a material bitcoin drawdown combines with losses in other high-risk holdings, but the score could rise if Tether reduces risky assets and improves disclosures.
S&P's 1–5 stability scale, created in 2023, places USDT lowest as Paolo Ardoino rejected the rating on X, saying it `wears S&P’s loathing with pride` while USDT dwarfs Circle's USDC market cap under $75 billion.

Insights by Ground AI

39 Articles

S&P Global Downgrades USDT Rating to ‘Weak’

USDT’s reserve mix is drawing fresh scrutiny after S&P cut its stability rating to “weak,” citing higher-risk assets like bitcoin and gold.

16 hours ago

Read Full Article

Benzinga

Center

Tether CEO Paolo Ardoino Slams Traditional Rating Agencies After S&P Downgrades Its Dollar Peg Ability

Paolo Ardoino, the CEO of Tether (CRYPTO: USDT), questioned on Wednesday the methodologies adopted by traditional rating agencies after the S&P downgraded the stablecoin issuer’s stability rating. Tether CEO Challenges TradFi Ratings Ardoino slammed S&P Global Ratings in an X post, saying that the company wears the “loathing” with pride. Ardoino criticized the “classical rating models,” alleging that they have led investors to put money in compa…

1 day ago·New York, United States

Read Full Article