Tether’s Accumulation of Bitcoin and Gold Faces S&P Downgrade
- Tether has accumulated over $13 billion in gold, totaling approximately 116 tons, more than all central banks combined in the last quarter.
- S&P Global downgraded Tether’s USDT stablecoin rating to a score of 5, indicating concerns about reserve liquidity due to rising allocations in Bitcoin and secured loans.
- Tether holds around $10 billion in Bitcoin and approximately $15 billion in secured loans, raising concerns about price volatility and counterparty exposure.
- Despite the downgrade, USDT maintains its dollar peg with a market capitalization exceeding $184 billion, supported by substantial US Treasury holdings over $130 billion.
The mixed asset strategy of Tether has led to skepticism from traditional finance but has not deterred demand for USDT among crypto users, who value its historical stability during market fluctuations.
Tether’s significant earnings from short-term US Treasury bills contribute to its financial resilience despite S&P’s concerns regarding liquidity and transparency in reserves. (Source)
