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Key Takeaways
- S&P downgraded $USDT’s stability score due to reserve risk and lack of full transparency.
- Tether responded with a sweeping defense of its reserves, profitability, and systemic relevance in emerging markets
Tether has pushed back against S&P Global Ratings after the agency downgraded $USDT’s stability score to 5, its lowest level, citing exposure to risky assets like Bitcoin and lack of reserve clarity.
Tether called the downgrade misguided and based on a legacy framework that ignores the stablecoin’s track record and real-world use. It noted $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 emphasized its $135 billion in Treasury exposure, placing 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 strength.
It also underscored $USDT’s global role as financial infrastructure in emerging markets like Türkiye and Nigeria, not just a speculative token.
CEO Paolo Ardoino dismissed the rating as legacy finance propaganda, posting, “We wear your loathing with pride,” and challenged S&P to assess $USDT using transparent, on-chain data rather than outdated models.