Tether CEO Rebuts “Weak” Peg Rating
Tether CEO Paolo Ardoino has dismissed S&P Global’s decision to downgrade USDt’s ability to maintain its US dollar peg, arguing that the ratings agency failed to account for billions in assets and steady revenue streams that reinforce the stablecoin’s backing.
re: Tether FUD
From latest attestation announcement (Q3 2025):
“Tether will continue to maintain a multi-billion-dollar excess reserve buffer and an overall proprietary Group equity approaching $30 billion.”
Tether had (at end of Q3 2025) ~7B in excess equity (on top of the…
— Paolo Ardoino 🤖 (@paoloardoino) November 30, 2025
According to Ardoino, Tether Group closed Q3 2025 with roughly $215 billion in total assets against $184.5 billion in stablecoin liabilities. He stated that the company held approximately $7 billion in excess equity, in addition to $23 billion in retained earnings, figures he claims S&P ignored.
Ardoino further explained that Tether generates about $500 million per month in base profits from U.S. Treasury yields alone, which he asserts strengthens the company’s peg-supporting reserves.
S&P’s downgrade to “weak,” the lowest rating on its scale, has stirred fresh concerns in the crypto industry, especially given Tether’s central role in market liquidity and trading.
Analysts Clash Over Tether’s Financial Stability
Arthur Hayes, the founder of BitMEX and a prominent market commentator, suggested that Tether may be accumulating gold and Bitcoin to offset declining revenue amid falling U.S. Treasury yields. While these assets could appreciate as interest rates drop, Hayes warned that a 30% market correction in gold and BTC could erode Tether’s equity and potentially render USDt insolvent “in theory.”
“I’m sure some large holders and exchanges will demand a real-time view of their B/S so they can assess the solvency risk of Tether. Get out your popcorn, I expect the MSM to run wild with this, especially all the editors with TDS who want to shit on Lutnick and Cantor for backing this stablecoin.”
He added.
Conversely, Joseph Ayoub, former lead digital asset analyst at Citi, pushed back, stating that his extensive research into Tether’s operations contradicts those fears. According to Ayoub, Tether maintains significant unreported excess assets, earns billions in interest income annually, and, by his assessment, is better collateralized than many traditional banks.
Tether’s launch of the USAT stablecoin marks a turning point in the American decentralized finance (DeFi) scene.