Tether’s CEO, Paolo Ardoino, and various market analysts have pushed back against the recent downgrade by S&P Global regarding USDt’s ability to maintain its peg to the US dollar. This downgrade, which was reported as ‘weak’, raised concerns among some analysts about Tether’s financial stability. Ardoino asserted that S&P failed to consider all of Tether’s financial assets and revenue streams, emphasizing that at the end of Q3 2025, Tether had total assets of approximately $215 billion, offset by about $184.5 billion in stablecoin liabilities.

“At the end of Q3 2025, Tether had around $7 billion in excess equity and approximately $23 billion in retained earnings.”

Moreover, Ardoino noted S&P’s oversight regarding Tether’s additional group equity and the significant profits generated monthly from US Treasury yields.

Analysts debate Tether’s balance sheet fundamentals:

Arthur Hayes, a prominent market analyst and founder of BitMEX, raised concerns that a substantial drop in gold or BTC prices could potentially jeopardize Tether’s financial standing. He warned that a drop of roughly 30% in the value of these assets could risk their solvency.

On the other hand, Joseph Ayoub, the former lead digital asset analyst at Citi, defended Tether’s position, suggesting they possess a substantial amount of excess assets and are more securely collateralized than many traditional banks.

For further insights, ambitious moves like Tether’s entry into commodity lending are anticipated as they continue to strategize amidst the fluctuating market conditions.