Promotion of Best CFD Trading Platform

Tether CEO Responds to S&P Downgrade, Emphasizes Strong Reserves

Sunday Nov 30 2025 20:20

Duration

2 min

  1. 1. Key Takeaways:

  2. 2. Introduction:

  3. 3. Tether's Response to the Downgrade:

  4. 4. S&P's Analysis and its Impact:

  5. 5. Arthur Hayes' Analysis and Rebuttals:

  6. 6. Joseph Ayoub's Counter-Argument:

  7. 7. Conclusion:

Key Takeaways:

  • Tether CEO's response to S&P's downgrade of USDT.
  • Emphasis on Tether's strong asset base and revenue generation.
  • Discussion of Arthur Hayes' analysis and contrasting view from Joseph Ayoub.

Introduction:

Tether CEO Paolo Ardoino and market analysts have challenged S&P Global's decision to downgrade USDt's (USDT) ability to maintain its US dollar peg. They argue that the ratings agency failed to fully account for Tether's total assets and revenue streams.

Tether's Response to the Downgrade:

According to Ardoino, Tether Group's total assets at the end of Q3 2025 amounted to approximately $215 billion, while its total stablecoin liabilities were around $184.5 billion. Referencing Tether’s Q3 attestation report, he stated, "Tether had, at the end of Q3 2025, about $7 billion in excess equity, on top of the about $184.5 billion in stablecoin reserves, plus about another $23 billion in retained earnings as part of our Tether Group equity. S&P made the same mistake of not considering the additional Group Equity, nor the roughly $500 million in monthly base profits generated by US Treasury yields alone."

S&P's Analysis and its Impact:

S&P Global downgraded USDt’s dollar-peg rating to “weak” on Wednesday, the lowest score on its scale. This prompted concern and skepticism among some analysts regarding the company, which has become a crucial component of the cryptocurrency market infrastructure.

Arthur Hayes' Analysis and Rebuttals:

Arthur Hayes, a market analyst and founder of the BitMEX crypto exchange, has speculated that Tether is purchasing large quantities of gold and BTC to offset income shortfalls caused by decreasing US Treasury yields. He suggested that as the Federal Reserve cuts interest rates, the value of gold and BTC should increase. However, he cautioned that a significant correction in these assets could pose a threat to Tether's financial stability. "A roughly 30% decline in the gold and BTC position would wipe out their equity, and then USDt would be, in theory, insolvent," Hayes said.

Joseph Ayoub's Counter-Argument:

Joseph Ayoub, the former lead digital asset analyst at Citi, refuted Hayes’ analysis, stating that he spent “hundreds” of hours researching Tether during his time at the financial institution. Ayoub argued that Tether possesses excess assets beyond what it publicly reports, operates an extremely profitable business that generates billions of dollars in interest income with a relatively small workforce of 150 employees, and is better collateralized than traditional banks.

Conclusion:

The debate surrounding the safety and stability of USDT continues. The Tether team defends their business model, while external analysts scrutinize their ability to maintain the dollar peg amid changing market conditions.

Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

Default Author Avatar

Written by:

Sophia Claire

Asset List

View Full List
Most Traded Commodities Indices Crypto Shares Forex
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now
Asset
Sell
Buy
Change (%)

Trade Now

Trade Now

Trade Now

Trade Now

Latest

View all
U.S.-Non-Farm Payrolls

Wednesday, 1 July 2026

Duration

10 min

US Jobs Report Preview: Will June Payrolls Revive Fed Hike Bets?

Wednesday, 1 July 2026

Duration

5 min

Markets are carefully monitoring June US labor numbers today
bitcoin-price

Tuesday, 30 June 2026

Duration

7 min

Bitcoin Price Outlook: Could BTC Fall Toward $53,000 After Losing $60,000 Support?

Latest news

sliver

Thursday, 2 July 2026

Indices

Silver Price Forecast: XAG/USD Rebounds Above $62 as Fed Bets Ease

oil

Thursday, 2 July 2026

Indices

WTI Oil Price Holds Near $69 as Weaker Dollar Supports Crude

gold

Thursday, 2 July 2026

Indices

Gold Price July 3: Spot Surges Past $4,120 on Weak Jobs Data

gold

Wednesday, 1 July 2026

Indices

Spot Gold Rebounds Above $4,000 as US Manufacturing Slows and Fed Shifts Messaging

oil

Wednesday, 1 July 2026

Indices

Crude Oil Prices Extend Post-War Slump as Supply Risks Fade and Hormuz Traffic Rebounds

U.S.-Non-Farm Payrolls

Wednesday, 1 July 2026

Indices

US Jobs Report Preview: Will June Payrolls Revive Fed Hike Bets?

Wednesday, 1 July 2026

Indices

Markets are carefully monitoring June US labor numbers today

bitcoin-price

Tuesday, 30 June 2026

Indices

Bitcoin Price Outlook: Could BTC Fall Toward $53,000 After Losing $60,000 Support?

oil

Tuesday, 30 June 2026

Indices

Brent Holds Above $73 as Iran Talks Uncertainty Offsets Hormuz Recovery

gold

Tuesday, 30 June 2026

Indices

Gold Price Today, July 1: Spot Gold Faces Worst Quarterly Loss in 13 Years

See all news