‘We wear your loathing with pride:’ Why S&P downgraded Tether after it bought more gold than any country

“`json
{
“title”: “Tether’s Aggressive Gold Acquisition Strategy Prompts S&P Downgrade Amid Growing Treasury Reserves”,
“content”: “Tether Holdings, the entity behind the USDT stablecoin, has significantly expanded its treasury reserves through aggressive accumulation of Bitcoin and physical gold throughout the past year. The company’s acquisition pace now rivals that of national treasuries, with recent quarterly purchases exceeding the combined gold acquisitions of all central banks globally.\n\nThe stablecoin issuer has amassed approximately 116 metric tons of physical gold bullion, establishing one of the largest corporate gold reserves worldwide. This substantial precious metal accumulation forms part of Tether’s broader strategy to strengthen its reserve backing for USDT, the world’s largest stablecoin by market capitalization.\n\nFollowing these developments, Standard & Poor’s has downgraded Tether’s credit assessment, citing concerns about the company’s reserve composition and risk management practices. The rating action reflects ongoing scrutiny from financial institutions regarding stablecoin operators’ treasury management approaches.\n\nTether’s executive leadership has responded to criticism with defiance, characterizing external skepticism as validation of their unconventional approach to reserve management. The company continues to emphasize its commitment to maintaining robust backing for USDT while diversifying beyond traditional dollar-denominated assets.\n\nThis strategic shift toward substantial precious metal and cryptocurrency holdings represents a significant departure from conventional stablecoin reserve practices, drawing both industry attention and regulatory scrutiny as Tether solidifies its position as a major player in digital asset markets.”,
“tags”: [“Tether”, “stablecoin”, “gold reserves”, “credit rating”, “cryptocurrency”]
}
“`