S&P Global Ratings downgraded Tether's stability rating, calling USDT's reliance on risky assets a 'deep vulnerability.' Tether, in response, claims that the analysts' conclusions 'mean nothing' and do not reflect the actual state of reserves.
Rating 'weak' due to reserve structure
The agency assigned USDT a 'weak' status, downgrading it from the 'constrained' category. The formal reason is that Tether uses more risky asset classes, including bitcoin, gold, corporate bonds, and secured loans.
S&P notes that the company has yet to provide a full audit of its reserves, publishing only brief attestations. Despite this, Tether claims to be fully backed by liquid instruments, including short-term U.S. Treasury bonds.
Tether: 'The metric means nothing'
Tether's CEO Paolo Ardoino sharply criticized the assessment. He stated:
'We proudly carry your dislike,' adding that the agency has been issuing high ratings for instruments that later became sources of financial crises for many years.
According to Ardoino, the company is 'over-capitalized' and does not hold toxic assets.
87 thousand BTC on Tether's balance
Tether's reserves have increased the share of BTC, making the stablecoin more dependent on volatile collateral.
In recent years, Tether has accumulated more than 87,000 BTC. According to company reports, this bitcoin is part of the 'excess reserve' and has not been used directly to back USDT. However, the S&P report emphasizes that the mere fact of increasing the share of BTC in reserves adds additional risk.
The share of bitcoin has increased from 3.6% to 5.4%, while the total volume of USDT exceeds $184 billion. Analysts warn: a sharp decline in BTC, along with the fall of other risky assets, could lead to a decrease in USDT coverage and the risk of under-collateralization.
USDT remains stable
Despite the criticism, there are no signs of USDT losing its peg. The stablecoin has maintained its dollar rate even amid the decline of bitcoin.
Tether also emphasizes that it is the 17th largest holder of U.S. Treasury bonds, which, according to the company, demonstrates a high level of reliability.
But S&P also voices other concerns: the opacity of banking, lack of accurate information about custodians, and the absence of an official mechanism for the direct redemption of USDT — unlike the competing USDC.
Tether increases its share of gold
At the same time, Tether is actively increasing its gold holdings. The company has expanded the issuance of the XAUT token, and the growing demand for RWA makes such assets one of the main drivers of Tether's current strategy.
