Tether CEO hits back at S&P over weak stablecoin rating

Tether CEO Paolo Ardoino slammed S&P Global Ratings after it gave the company’s stablecoin its lowest stability score, citing disclosure gaps and high-risk reserves.
Summary

• S&P rated tether’s stablecoin “5 (weak)”, pointing to limited transparency and growing exposure to bitcoin, gold, secured loans, and corporate bonds.
• Ardoino framed the rating as a failure of traditional finance to assess an overcapitalized crypto firm operating without “toxic reserves” while remaining profitable.
• S&P warned that price drops in bitcoin and other risky assets could undercut tether’s overcollateralization buffer, though most reserves sit in short-term US Treasuries and cash equivalents.

Tether CEO Paolo Ardoino issued a statement criticizing S&P Global Ratings following the agency’s assignment of a low score to the company’s stablecoin, according to posts on social media platform X.

to S&P regarding your Tether rating:

We wear your loathing with pride.

The classical rating models built for legacy financial institutions, historically led private and institutional investors to invest their wealth into companies that despite being attributed investment grade…

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— Paolo Ardoino 🤖 (@paoloardoino) November 26, 2025

S&P Global Ratings assigned Tether’s stablecoin a score of “5 (weak)” on its stablecoin stability scale, the lowest rating on the five-point scale, the agency announced in a recent report. The rating agency cited “persistent gaps in disclosure” and an increasing proportion of “high-risk assets” in Tether’s reserves as primary factors for the assessment.

The reserves in question include Bitcoin, gold, secured loans, and corporate bonds, according to the S&P report. The agency stated that the stablecoin’s transparency and governance practices lag behind those of competing stablecoins.

Ardoino responded to the rating on X, stating that Tether would “wear your loathing with pride.” The executive criticized traditional grading models used in conventional finance, noting that such models had previously directed investors toward companies that subsequently collapsed, prompting regulators to examine the independence and objectivity of major rating agencies.

Ardoino characterized the low score as evidence of the traditional finance sector’s difficulty in evaluating a company attempting to operate outside conventional financial systems. The CEO described Tether as the first overcapitalized company in the industry, asserting it operates without toxic reserves while maintaining profitability.

In its stability report, S&P stated that Bitcoin (BTC) comprises approximately 5.6% of Tether’s stablecoin in circulation, exceeding the company’s 3.9% overcollateralization buffer. The agency warned that declines in Bitcoin’s value or other high-risk assets, including corporate bonds, precious metals, or secured loans, could result in the stablecoin becoming undersecured.

A substantial portion of the reserves consists of short-term U.S. Treasury bills and other dollar-denominated cash equivalents, according to the report.

S&P noted that the issuer provides limited transparency regarding the financial stability of its custodians, counterparties, and banking partners, contributing to the low rating. The agency indicated the rating could improve if Tether reduces exposure to high-risk assets and provides more detailed information about its reserves and partners.

Tether’s stablecoin maintains its position as the largest stablecoin by market capitalization.