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Tether CEO Paolo Ardoino says that the S&P World Rankings company’s downgrade of Tether’s USDT stablecoin is an indication that the normal finance “propaganda machine is rising fearful.”
“The classical score fashions constructed for legacy monetary establishments, traditionally led non-public and institutional buyers to take a position their wealth into corporations that regardless of being attributed funding grade rankings collapsed,” Ardoino wrote in a latest X submit.
“The normal finance propaganda machine is rising fearful when any firm tries to defy the drive of gravity of the damaged monetary system,” he added. “No firm ought to dare to decouple itself from it.”
He then stated that Tether is the “first overcapitalized firm within the monetary business, with no poisonous reserves.”
“Tether resides proof that the normal monetary system is so damaged that it’s turning into feared by the emperors with no garments,” Ardoino stated.
S&P Downgrades USDT’s Greenback Peg Score To Lowest Rating
Ardoino’s remarks come after S&P World Rankings downgraded Tether’s USDT to the bottom rating on its stablecoin stability scale, citing issues across the token’s capability to take care of its peg to the US greenback.
The “weak” evaluation was on account of a number of elements, together with Tether’s determination to again its USDT token with “higher-risk” belongings comparable to Bitcoin, gold, loans and company bonds that it believes are topic to larger volatility than the greenback.
“Bitcoin represents 5.6% of USDT in circulation, exceeding the three.9% overcollateralization margin related to a collateralization ratio of 103.9%,” the rankings company wrote in its report.
“A decline within the worth of bitcoin or the worth of different higher-risk belongings might due to this fact scale back collateral protection.” it went on to warn.
Breakdown of the belongings backing USDT (Supply: S&P World Rankings)
The rankings company additionally highlighted that Tether is headquartered in El Salvador and controlled in keeping with the Nationwide Fee of Digital Belongings (CNAD), which it says has looser necessities for reserve belongings.
One other situation that was highlighted by the S&P World Rankings is the shortage of enough audits or proof-of-reserve stories for Tether’s USDT.
Regardless of the weak score, the company did add that 75% of USDT’s backing comes from US Treasurys and different short-term monetary devices which can be thought to be “low-risk.”
Report Comes Amid Landmark 12 months For Stablecoins
The report from S&P World Rankings follows what has been a report 12 months for stablecoins.
The area began to achieve substantial momentum after US President Donald Trump signed the GENIUS Act into regulation in July.
Stablecoin market cap (Supply: DefiLlama)
The regulatory readability that the GENIUS Act supplied the business noticed a number of main conventional finance companies begin to discover stablecoins. This led to the capitalization of the stablecoin market hovering to above $300 billion for the primary time.
Amid the growth within the stablecoin market, Tether’s USDT has maintained its dominance. At present, the stablecoin accounts for over 60% of the market, or round $184.529 billion, knowledge from DefiLlama reveals. The subsequent-biggest stablecoin is Circle’s USD Coin (USDC), which has a capitalization of over $75.48 billion.
Tether Appearing Like A Central Financial institution
Together with its dominant place within the stablecoin market, Tether can also be the Seventeenth-largest holder of US Treasurys on the planet, with over $112 billion in short-term US authorities securities. This places it forward of most nations, together with South Korea, Saudi Arabia, and Germany, in keeping with Ardoino.
With 135 billion of U.S Treasuries, Tether is now the Seventeenth largest holder of U.S debt, passing additionally South Korea.
Quickly Brazil! pic.twitter.com/wUDyvGcSHE— Paolo Ardoino 🤖 (@paoloardoino) October 29, 2025
Tether has additionally been accumulating massive quantities of gold. Jefferies just lately estimated that the stablecoin issuer holds round 116 metric tonnes of gold, which makes it “the biggest private-sector gold holder exterior central banks.”
Within the third quarter this 12 months alone, the stablecoin agency reportedly added 26 tonnes, which was roughly 2% of the worldwide gold demand throughout that interval.
Nonetheless, the corporate has not solely acquired substantial quantities of bullion, however has additionally reportedly acquired a big fairness stake of as much as 37.8% in a gold-royalty firm as a part of its broader push to develop its mining sector publicity and tokenized-gold infrastructure.
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