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Tether Faces Fresh Scrutiny After S&P Downgrade as Hayes Warns on Bitcoin and Gold Risk

Demand for independent audits grows following concerns over USDT’s expanding Bitcoin and gold holdings.

Overview

  • S&P Global cut USDT to its lowest stability score on Nov. 26, citing rising exposure to volatile assets and limited disclosure.
  • Tether’s Q3 attestation shows about $181 billion in assets against roughly $174 billion in liabilities, including around $139–140 billion in cash and cash equivalents.
  • The report lists approximately $12.9 billion in gold and $9.9–$10 billion in Bitcoin, drawing focus to mark-to-market and liquidity sensitivities.
  • Arthur Hayes said a 30% drop in the combined Bitcoin and gold positions could erase Tether’s equity and urged real‑time balance‑sheet visibility for large holders and exchanges.
  • Tether and CEO Paolo Ardoino rejected S&P’s methodology and defended the firm’s capitalization and profits as others called for full independent audits; separately, Tether is winding down its Uruguay mining venture and cutting staff there.