$30 billion stablecoin defense: Tether CEO fires at Wall Street rating agencies and Arthur Hayes

Standard & Poor's has downgraded Tether to the lowest rating of “weak”. Tether rebutted: owning $30.5 billion in equity is sufficient to absorb fluctuations in Bitcoin and gold. (Background: Arthur Hayes: If Tether's Bitcoin and gold drop by 30%, USDT will be insolvent.) (Additional context: Tether's purchase of Bitcoin drags down USDT “S&P gives the worst rating”: Increased risk asset weight exacerbates the possibility of depeg.) The old adage of cash is king encountered a direct conflict with USDT in the crypto market of 2025. S&P Global (S&P Global) has downgraded this circulating stablecoin worth $184.5 billion to the lowest rating of “weak”, citing that 18% of reserves are bet on Bitcoin and gold. In the face of this label, which is almost equivalent to “junk grade”, Tether CEO Paolo Ardoino brandished $30.5 billion in group equity, retorting that traditional institutions “measure a spaceship with a locomotive formula”. Wall Street is worried about a Lehman Brothers repeat, while the crypto world believes the model is outdated, with both sides debating who truly stands on the safe side. Rating dropped to “weak” overnight; S&P worries about 18% risk assets. Approximately 5.6% of Tether's reserves are in Bitcoin, and 12.9% are in gold. S&P determines that “stablecoins should target zero-risk assets”; this act is akin to banks misusing deposits for cryptocurrency trading. If prices pull back, the 1:1 USD peg may be at risk. BitMEX founder Arthur Hayes warned: “This is a bet on interest rates. If Bitcoin and gold prices drop by 30%, Tether's account may show insolvency.” Tether CEO Ardoino countered on X, emphasizing that financial reports show $7 billion in excess reserves plus $23 billion in retained earnings. This group equity acts like ballast to absorb fluctuations in risk assets; at the same time, Tether holds over $100 billion in U.S. Treasury bonds, netting approximately $500 million in monthly interest, providing continuous cash flow, allowing it not to rely on external borrowing. Even if Bitcoin drops to zero, USDT in users' hands will not create a financial gap. Is the model misplaced? Banking leverage confronts “narrow banking”. Former Citibank analyst Joseph Ayoub pointed out that commercial banks often magnify $100 in deposits into $1,000 in assets, which requires government backing in a bank run; Tether, however, maintains 100% liquidity coverage plus equity buffer, making its structure closer to “narrow banking”. However, S&P applies a money market fund framework, showing zero tolerance for any non-cash positions, leading to the lowest rating. The review indicates that the rating gap reflects the traditional model's inability to mirror the complexity of “crypto-native proprietary trading”. Macro hedging or increasing bets? Trump's second term has triggered inflation and expectations of a weak dollar. Tether has placed part of its reserves on Bitcoin and gold, akin to hedging against sovereign currency risks. S&P's downgrade has built a high wall for institutional funds, slowing down traditional players' plans to enter the market by loosening regulations. For investors, Tether is no longer just a “USD IOU”; it is more like a hedge fund priced in USD but betting on global macro trends: equity buffers are the moat, while risk assets are the Achilles' heel. In the future, whoever can define the word “safety” will guide the next wave of capital flow. The downgrade and counterattack lay the ledgers of the old world and the new world under the sunlight. Is S&P unveiling another Lehman prelude, or is it a misjudgment of a century-old abacus? The answer may only surface during the next severe market shake-up. Related report: Tether CEO Paolo Ardoino: S&P's smear is our proudest badge! Response to USDT being rated as “junk rating”. Tether announces investment in digital asset infrastructure platform Parfin: accelerating USDT adoption in Latin America. Tether invests in Bitcoin mortgage platform Ledn: The era of borrowing against holdings has arrived, with the market size expected to reach $60 billion by 2033. This article was first published in BlockTempo, the most influential Blockchain news media.