Tether Fires Back at S&P: Calls Downgrade a Joke, Says ‘Trust Us, We’re Fine!’ 😂

by

Tether, the cryptocurrency juggernaut that’s been around for longer than your last bad haircut, didn’t take too kindly to S&P Global Ratings’ little downgrade on Wednesday. After the agency decided to lower USDT’s stability score to a sad little 5-its lowest possible rating-Tether made it very clear they think S&P is living in the past, relying on old-school thinking and failing to appreciate the digital money revolution that’s already passed them by.

Tether’s Bold Response to S&P’s Lame Rating: ‘We’ve Been Doing This for a Decade, and You’re Still Not Getting It’ 🙄

S&P decided to knock down USDT’s stability score to a weak 5-yikes! Why? Well, apparently because Tether is allegedly holding too many “risky” assets and failing to open up about its reserves. The big bad culprit? Bitcoin, which now holds a bigger slice of USDT’s reserves. But, oh wait-according to S&P, if Bitcoin takes a nosedive, USDT could be in trouble. Well, thanks for the heads-up, S&P!

But hold your horses. Tether wasn’t having any of it. They came out swinging, claiming that S&P is using some dinosaur financial models that don’t even come close to understanding the digital age. Tether’s statement pointed out that S&P’s analysis completely ignored USDT’s ten-year-long history of keeping its peg intact and the real-time reserve reporting Tether’s been doing.

Paolo Ardoino, CEO of Tether, had a little fun at S&P’s expense, calling skepticism from traditional rating agencies a “badge of honor.” Because let’s face it, Tether isn’t playing by the old-school rules. In fact, they say the classical financial models that rating agencies rely on have been wrong for so long, it’s not even funny anymore.

“The classical rating models led investors to put their money into companies that crashed and burned. We’re not doing that,” Ardoino boldly posted on X (formerly Twitter). “The traditional finance system is just nervous because we’re shaking up the status quo.” 👀

“They don’t like it when companies challenge the status quo. But guess what? We’re here to defy gravity, and there’s nothing you can do about it!”

In its fiery rebuttal, Tether said that S&P’s concern about “risk assets” didn’t paint the whole picture. Sure, the report claimed a rise from 17% to 24% year-over-year, but Tether’s reserves grew from $143.7 billion in 2024 to $181.2 billion in 2025, meaning they’re holding more reserves than ever before. So much for being on the edge of collapse!

On top of that, Tether is totally playing nice with regulators, from El Salvador to France, and they’re registered under the U.S. Financial Crimes Enforcement Network. They also pointed out that their usage metrics are through the roof, which doesn’t exactly scream “we’re about to crash.” Even S&P’s own report had to admit that USDT has consistently held its peg and honored redemptions. So, nice try, S&P, but not today!

Tether went on to highlight how USDT is actually a “systemically important” asset, supporting everything from remittances to payrolls to commercial payments across emerging markets, like TĂŒrkiye, Nigeria, and Argentina. They’re not some speculative trading token, guys, they’re doing real-world stuff. It’s hard to imagine the legacy finance systems doing that, huh?

Another bombshell? Tether’s massive U.S. Treasury exposure. With $135 billion in direct and indirect holdings, Tether ranks as one of the largest Treasury holders in the world. The 17th largest, to be exact. So, to say Tether is vulnerable to liquidity stress? Tether thinks that’s a little rich, given their financial clout.

And did we mention profits? Tether made over $13 billion in net profit in 2024 and is on track to hit $10 billion in 2025. That’s more than most major financial institutions. It’s almost as if Tether is more financially stable than the old guys at S&P would care to admit. 😏

Despite all the drama, S&P did leave a little door open for redemption. If Tether can reduce its exposure to “riskier” assets and give a little more transparency on reserves, S&P says the score could improve. Tether’s not opposed to this idea, and they’re open to a direct review from S&P to evaluate their real-world market dynamics. Don’t worry, Tether’s not afraid to let the numbers do the talking.

FAQ ❓

  • What did S&P say about USDT?
    S&P downgraded USDT’s stability score, blaming rising exposure to higher-risk assets and poor reserve disclosure. Sounds a bit dramatic, right?
  • How did Tether respond to the downgrade?
    Tether said S&P was using outdated models and ignoring USDT’s solid history of keeping its peg. Talk about missing the point!
  • Why did S&P highlight bitcoin exposure?
    S&P warned that Bitcoin’s growing share of USDT’s reserves could lead to collateral problems if Bitcoin crashes. Tether’s like, “We’re good, thanks for the advice, though.”
  • What does Tether say supports long-term stability?
    Tether points to their massive U.S. Treasury holdings, record profits, and real-time reporting to prove they’re not going anywhere. 🍀

Read More

2025-11-27 01:30