Tether Rated 'Most Vulnerable' by S&P Despite $150B Profits and Massive Gold Reserves

Based on Odaily, Tether, the largest stablecoin issuer, holds 116 tons of physical gold and is projected to earn $150 billion in 2025. However, it was downgraded to the lowest rating (5—Vulnerable) by S&P Global due to concerns over reserve structure risk, limited transparency, and regulatory gaps. S&P cited rising exposure to high-risk assets like Bitcoin and insufficient disclosure of key operational details. In contrast, Circle’s USDC received a higher rating (2—Strong), though its stock has fallen sharply amid ongoing losses. Tether plans to launch a U.S.-focused stablecoin, USAT, under the GENIUS Act framework, signaling a shift toward regulatory compliance. The move highlights the growing importance of RWA (Real-World Assets) in bringing traditional financial risk controls to blockchain-based systems.