Tether CEO rebuts S&P downgrade of USDT peg resilience rating
S&P Global on Wednesday lowered its assessment of USDt’s (USDT) ability to maintain its U.S. dollar peg to “weak,” the lowest level on its scale, citing exposure to Bitcoin and gold. Tether CEO Paolo Ardoino and several market analysts disputed the downgrade, arguing the agency did not factor in all of Tether’s assets and revenue streams.
Ardoino, referencing Tether’s Q3 2025 attestation, said the Tether Group held approximately $215 billion in total assets at the end of the quarter, against about $184.5 billion in total stablecoin liabilities. He said the company had about $7 billion in excess equity in addition to roughly $184.5 billion in stablecoin reserves, and another $23 billion in retained earnings within Tether Group equity. Ardoino added that the firm generates roughly $500 million in monthly base profits from U.S. Treasury yields alone, which he said S&P did not include in its analysis.
The downgrade prompted concerns among some observers given Tether’s role in crypto market infrastructure.
Analysts assess Tether’s balance sheet
Arthur Hayes, a market analyst and founder of the BitMEX crypto exchange, suggested Tether may be purchasing substantial amounts of gold and BTC to offset reduced income from declining U.S. Treasury yields. He said that if the Federal Reserve cuts interest rates, gold and BTC could appreciate, but warned that a sharp reversal could pose risks. According to Hayes, a roughly 30% decline in the gold and BTC position would eliminate Tether’s equity and could theoretically render USDt insolvent.
Joseph Ayoub, former lead digital asset analyst at Citi, countered Hayes’ view, stating he spent “hundreds” of hours analyzing Tether. Ayoub said Tether holds additional assets beyond what is publicly reported, operates a highly profitable business that generates billions of dollars in interest income with about 150 employees, and is, in his view, better collateralized than traditional banks.
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