Crypto’s are the most trusted given the lowest ‘bad’ rating by a major tradfi agency
Tether’s USDT, a prominent stablecoin with $185 billion in circulation at $185
IS & P initially released its framework for rating stablecoins in 2023 to measure risks such as monetization, management and asset-backed in the emerging sector. According to their latest report on USDT, tether reserves have gone through several volatile holdings over the past year. These conservative assets, such as bitcoin, gold, secured loans, and corporate bonds, now make up 24% of the reserve mix, up from 17% in 2024 in 2024 and 2024 in 2024.
One of the sharpest criticisms of S&P in its downgrade of USDT lies in its increasing reliance on Bitcoin especially as a reserve asset, which is now reconstructed at 3.6% of the reserve of 3.9% itself in its quarterly report (PDF). According to S & P, this exposure increases the risk associated with the popular volatility of Bitcoin.
IS & P also sees serious problems in relation to the removal of tether, since the study of stablecoins that emit energy provides more than high-level summaries, with zero granularity of who owns these assets, how, and which partner will remain in the shadows.
That said, tether reserves will still be heavily dependent on US short-term plans and equity, accounting for 75% of reserves. Despite the red flags suspected from the S & P, the USDT held the $ 1 Peg of Crypto’s Admides in Crypto years ago, by managing billions in returns without the collapse of the crypto Exchange FTX.
Tether spokesperson reported Reuters The company “strongly agreed” with S&P’s assessment, which uses an outdated model that ignores USDT’s track record and critical infrastructure in emerging markets.
Tether CEO Paolo Aredono went further to X, putting down the Downgrade as a badge of honor: Tether “disdains the S & P with pride,” it thrives “olwamentver” overcapitalieged “in a flawed legacy system. “Classical valuation models are built for legacy financial institutions, historically led by institutional investors and private institutions to invest their wealth into companies that although they are called investment grade financial ratios they collapsed,” said Ardono.
In another post, Aredoino pointed to the recent announcement of the recent importance, in which the company claims that the excess swindled buffer is approaching $ 30 billion; However, this is not a clear part of USDT’s current days.
In another post, the failure of ARDOINO is referred to the S & P during the financial crisis of 2008, which was portrayed by a blind woman in a film related to a great mystery. IS & P has been paid a settlement of 1.375 billion in the direction related to the Department of Justice in the US regarding the allegations that the positions of the Agency caught investors with its ratings of financial products in the lead of the financial crisis. Notably, it was initially established in January 2009, almost as a direct response to the collapse of Treaties involved in the financial crisis.
S & p like
– Paolo Ardono 🤖 (@paoloardoino) November 27, 2025
Just a few weeks before scrutinizing tether, S&P slapped a ‘-‘ credit rating on Bitcoin Treasury Company, highlighting the Firm’s $80 Billion-plus Bitcoin Hood as a potential market risk. The agency’s view remains stable now, but the flags without Cash’s Flow Cash and Bitcoin are focused as red flags, similar to the exchange risks baked into the houses of USDT.
While S & P sees problems with tether and the strategy using bitcoin as a reserve asset, many well-known institutions, such as Harvard’s assets, are buying a crypto store to hold as a high-end, digital store.
It should also be noted that S&P focuses more on the ability of stablecoins to issue tokens in dollars in their assessment, so the asset that works when issuing its private currency is not a good fit. In other words, USDT may be viewed unfairly by many in the traditional financial system because it operates in a new way built on Bitcoin rather than the traditional, dollar-based system.
