So, Tether’s been around the block a few times, getting battered here, knocked over there. But hold onto your digital hats-this time, it’s different. Or so it seems.
On November 26th, S&P Global Ratings dropped a bomb-an update so juicy, it might just be the most dramatic stablecoin drama in a whole decade. And guess what? Shanaka Anslem Perera, the analyst with a poker face, spills the tea on why the entire crypto universe should probably sit up and listen.
“Weak” Tether Gets a “C” in Trust – No, That’s Not Good
S&P gave USDT a “Weak” rating-5 out of 10, or as I like to call it, the “I wouldn’t sleep on this” score. No other giant stablecoin has ever been that poorly rated. Ever.
Perera lays it out with a brutal comparison:
- Bitcoin in reserves: 5.6% (because why not?)
- Tether’s safety buffer: 3.9% (yes, less than the Bitcoin it’s supposedly backing)
“Read that again,” he says. “The asset known for volatility has a bigger cushion than the actual stable asset they’re relying on.”
S&P didn’t hold back either. A Bitcoin dip, they warn, might make USDT look like an overworked, underperforming trust fund-implying it could go undercollateralized.
And with a $184B stablecoin, flowing through exchanges, DeFi, and communities from Lagos to Manila, that’s like putting a tiny Band-Aid on a gaping wound.
The Skeptics Were Smarter Than They Seemed-For Once
Heard the haters for years claiming Tether’s cold, hard disclosures didn’t match up? Turns out, they might’ve just been ahead of the curve. Regulators weren’t exactly singing Kumbaya either.
Perera highlights:
- NY Attorney General found USDT was fully backed on only 27.6% of the days they checked (so, not quite Willy Wonka’s chocolate factory here).
- The CFTC slapped Tether with a $41M fine for claiming dollar backing while holding a bunch of loans and whatnot that aren’t exactly dollar bills.
But yet, USDT kept growing-became the backbone of global crypto, the noose that keeps the whole circus hanging together.
The Reserve Recipe: Not Exactly the Safe-Sounding Bake
S&P’s downgrade isn’t just about Bitcoin’s rearview mirror. Nope. They point out that Tether’s reserves have shifted-assets like gold, loans, bonds, and cryptocurrencies puffed from 17% to 24% in a single year. Fancy growth, but not exactly trustworthy.
And transparency? That’s still the ghost in the machine: no full audits, zero clarity on custodians, no foolproof asset segregation-basically, a game of hide and seek with your money.
Especially when millions in Lagos, Manila, or Caracas are clinging to USDT like it’s the last cold beer in the desert, unaware of the fancy risk report. They probably don’t even know the ratings exist.
Tether’s Reply: “We’re Fine, Honestly” – But the Market Has the Say
CEO Paolo Ardoino shrugged off the whole thing, claiming USDT “wears S&P’s loathing with pride.” Because what better way to reassure a nervous world than a cheeky fuck-you?
Perera’s take? Fair enough. This is the first real grade from the official rating guys on the world’s most-used stablecoin. And the real test? It’s coming from the market-where hype and panic collide.
USDT does more than $100 billion a day. The stakes? Higher than a kite on a windy day. Buckle up, crypto fans, chaos might be just around the corner.
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2025-11-27 18:41