S&P vs Tether: The Hottest Rating Battle in the Crypto Industry

Source: TokocryptoBlog Original Title: S&P vs Tether: The Hottest Clash in the Crypto Industry This Year Original Link: https://news.tokocrypto.com/sp-vs-tether-bentrokan-terpanas-di-industri-kripto-tahun-ini/ In a heated drama between the crypto world and traditional financial institutions, S&P Global Ratings officially downgraded Tether (USDT) to its lowest level, sparking a war of words with its CEO, Paolo Ardoino. This clash opens an ever-deepening chasm between digital innovators and the old financial gatekeepers.

S&P Downgrades Tether to “Weak” Rating: Worst Ranking on Their Scale

On November 26, S&P Global Ratings downgraded Tether to “5 (weak)”, the lowest level on the stablecoin risk scale they launched in 2023.

S&P alleges the existence of:

• Transparency gap
• High portion of risky assets in reserves, such as Bitcoin, gold, corporate bonds, secured loans, and other assets.
• The lack of information regarding credit and market risks from custodians or Tether partners.

However, at the same time, S&P acknowledges that USDT has proven to be stable, even when the crypto market experiences turbulence.

Tether CEO Fiercely Opposes: “We Are Proud to Be Hated!”

Not long after the report was released, Tether CEO Paolo Ardoino fired back with a strong response.

He wrote: “We wear your loathing with pride.”

Ardoino criticizes the traditional rating model which he believes:

• Failed to assess large financial institutions that subsequently collapsed
• Not relevant for digital asset companies working with different reserve dynamics
• Trapped in an old mindset that cannot keep up with innovation

Ardoino emphasized that Tether is actually healthier than many financial institutions that have been given high ratings by agencies like S&P.

Tether: “We Are More Resilient Than Traditional Banks”

Tether outright rejects the S&P assessment.

The company claims:

• Has issued USDT worth approximately $184 billion
• Always able to fulfill the redemption (
• Successfully survived the banking crisis, stock market collapse, and cryptocurrency market turbulence

Separate reports also indicate that Tether is now the largest independent holder of gold in the world, showcasing an increasingly aggressive reserve diversification strategy.

The Great Battle: Crypto vs Traditional Finance

This tension underscores the big question that continues to haunt the modern financial world.

Who has the right to set risk standards in the digital era?

Are traditional rating agencies still relevant for assessing stablecoins, or should they be the ones adapting?

With stablecoins like Tether increasingly playing an important role in the global market, this clash seems to have just begun.

Conclusion

The decline in the S&P rating is not just a number, but a symbol of a major clash between two financial paradigms.

S&P remains committed to the old standards.

Tether positions itself as a challenger to the outdated financial system.

For now, the crypto world is waiting for the next chapter of this major drama.