Core Insights - Tether's USDT stablecoin continues to function effectively despite market volatility, maintaining its peg to the U.S. dollar and demonstrating significant profitability, earning over $10 billion in the first nine months of 2025 [1] - Concerns regarding Tether's transparency and the stability of its reserves have led to a downgrade by S&P Global, reflecting traditional finance's skepticism towards the crypto sector [2][3] - Tether's CEO, Paolo Ardoino, defends the company's position, asserting that it is overcapitalized and challenges the credibility of traditional financial systems [4] Group 1: Company Performance - Tether has generated more than $10 billion in profit during the first nine months of 2025, comparable to major financial institutions like Goldman Sachs and Morgan Stanley [1] - The company has maintained its USDT stablecoin's peg to the U.S. dollar, allowing for redemption at any time, which highlights its operational stability [1] Group 2: Market Concerns - S&P Global downgraded Tether's USDT rating from 4 to 5, indicating increased concerns about the stability of the stablecoin amid a bear market [2] - The downgrade was influenced by the opacity of Tether's reporting and the fact that bitcoin now constitutes over 5% of the reserves backing USDT, raising fears of undercollateralization if bitcoin prices decline [3] Group 3: Leadership and Strategy - Tether's CEO, Paolo Ardoino, expressed confidence in the company's model, claiming it is the first overcapitalized company in the financial industry and criticizing traditional finance for its failures [4] - Angel investor Jason Calacanis suggested that Tether should sell its bitcoin holdings, invest solely in U.S. treasuries, and undergo multiple audits by American firms to enhance transparency [5]