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Expert Says the Price of XRP Must be Extremely High to Maintain This Trend

Mark Brennan
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Expert Says the Price of XRP Must be Extremely High to Maintain This Trend

An XRP community figure has suggested that the XRP price would have to be “extremely high” to maintain the trend of consistent inflows from XRP ETFs.

The introduction of XRP ETFs has rejuvenated bullish discussions surrounding XRP price action, especially considering these products’ early success. For context, Canary Capital led the charge with the launch of its XRPC fund on Nov. 13, which attracted $245 million on its debut.

XRP ETFs Seeing Early Successes

Bitwise followed a week later with its ETF product dubbed “XRP,” with an impressive $105 million inflow on its first trading day. Meanwhile, Grayscale and Franklin Templeton debuted GXRP and XRPZ on Nov. 24. While GXRP saw $67.36 million in inflows, XRPZ recorded $62.59 million.

Since then, these four funds combined have seen reduced netflows. In the latest update, the ETFs recorded $21.81 million in net inflows on Nov. 26, lower than the $35.41 million they witnessed the day before. However, despite the drop in netflows, what if they observed this same reduced $21 million for up to a year?

How Much XRP These Funds Could Gulp in a Year

Notably, the XRP community is awaiting the approval of two more spot XRP ETFs, one from 21Shares and another from CoinShares. Meanwhile, market commentator Chad Steingraber proposed that if the number of ETFs rose to seven and these seven saw persistent inflows, they could drain the circulating XRP supply.

Steingraber analyzed how these funds could gulp XRP supply, but his numbers were largely imprecise due to new data. As a result, we provided another assessment with the latest figures. Specifically, if the two pending funds follow a similar trend as the existing ones, the latest $21.8 million inflow figure could rise to around $32.7 million worth of inflows a day from all six products.

With this, the ETFs will attract about $163.5 million worth of inflows within a five-day trading week. At this pace, the inflows would surge to $654 million in a month. For perspective, with the first product emerging on Nov. 13, the existing four products have attracted $643 million worth of inflows in just two weeks. However, this is largely due to their large first-day flows.

Meanwhile, with $654 million in capital within a month, the six products could record about $7.484 billion in capital influx in a year. Considering the current XRP price of $2.19 per token, this $7.484 billion inflow would gulp 3.583 billion XRP, representing nearly 6% of XRP’s current circulating supply.

“XRP Price Must be Extremely High”

However, Steingraber suggested that in less than a year, the ETFs may drain the entire XRP supply in circulation if the products followed the figures he presented instead. Nonetheless, he suggested that this could extend to a year on a conservative assumption.

He then factored in possible ETF products from larger asset managers like BlackRock, which could lead to higher inflow figures. According to Steingraber, the only factor that could stop the products from draining the XRP supply at this pace is for the XRP price to be extremely high.

Top Developer Says XRP Will See Slight Periods When Prices May Not Move Sharply Despite ETF Demand

Elendu Benedict
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Top Developer Says XRP Will See Slight Periods When Prices May Not Move Sharply Despite ETF Demand

Software engineer Vincent Van Code has highlighted how a loophole in the concluded Ripple vs. US SEC legal rift will affect the impact of US spot ETFs on XRP.

Notably, Ripple and the US Securities and Exchange Commission decided to withdraw their appeal on the 2023 ruling by US District Judge Analisa Torres. The verdict was a partial victory for both parties, stating that XRP is not a security, nor do its sales in the secondary market constitute offering unregistered securities.

However, Judge Torres ruled that past sales to institutions violated securities laws and issued an injunction preventing XRP from defying these terms in the future. However, Ripple would avoid sales to institutions altogether to avert regulatory issues.

Notably, efforts to change this ruling under the current pro-crypto regime fell apart before Ripple and the US SEC finally decided to end the years-long case.

Impact on XRP ETFs?

Meanwhile, serial AI startup founder Van Code shed light on this ruling and how it could potentially affect XRP’s institutional accrual. 

Notably, Ripple holds a large chunk of the token’s supply in escrow as part of its long-standing measures to control supply. Data from XRPScan shows that 34.76 billion tokens are currently in escrow, over 34% of the asset’s maximum supply.

Typically, ETFs purchase an underlying asset through authorized participants, who acquire it either through open-market purchases or over-the-counter (OTC) trading. As a large holder of XRP, Ripple could have been an ideal venue to buy XRP. This would ensure these asset managers secure the tokens before they enter the market and neutralize existing demand.

However, the 2023 injunction means Ripple may not be able to sell directly to these ETFs. Van Code believes this would ensure that the XRP price does not move sharply, as the process of matching Ripple’s XRP unlock with ETF demands could neutralize the impact.

There are already growing concerns that XRP has not reflected the price predictions of many upon the ETF launches. While community member VanQish has explained some of the reasons for this, Van Code suggests that Ripple’s inability to sell XRP directly to institutional players could also affect how XRP moves relative to demand.

Is There a Way Out?

But Van Code noted that Ripple “only sell what it needs.” Notably, of the 1 billion XRP tokens released monthly, Ripple re-locks portions it does not require. This suggests that rebalancing efforts will ultimately drive XRP price growth when they align with institutional demand.

Remarkably, the software engineer claimed that asset managers could be speaking with Ripple about the timing of its monthly release. However, this is not practicable because Ripple does not have control of the fundamental escrow terms. The safe-lock has been automated to release and relock unused tokens, all of which the XRP Ledger enforces.

Nonetheless, analysts have tipped that ETF inflows will drive XRP to unprecedented prices, regardless of how asset managers buy. Chad Steingraber predicted that ETFs could create a supply shock, potentially driving XRP to $225 per coin.

Bitcoin $91K Comeback Mirrors 2021’s Boom-and-Bust Cycle: Will History Repeat?

Mark Brennan
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Bitcoin $91K Comeback Mirrors 2021’s Boom-and-Bust Cycle: Will History Repeat?

The current Bitcoin price action shows striking similarities to the 2021 market cycle, as the asset rallies back to $91K.

In a weekly chart shared on X, market watcher Crypto Rover highlighted nearly identical movements across trendlines and channel boundaries, drawing parallels between the past and present Bitcoin cycles.

Looking back at 2021, Bitcoin’s price showed a series of rallies and corrections. At the close of 2020, the cryptocurrency traded at $25,965 and entered a rising channel that carried it to an upper boundary near $64,000 by April 2021. 

Following this peak, the price retraced toward the mid-channel level, dropping to around $30,000 in May and lingering between $30,000 and $40,000 through late July.

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Bitcoin then resumed its upward rally, forming a second top, the then all-time high, at $69,000 in November 2021. However, this move failed to breach the channel’s upper boundary, leading to a major correction. A subsequent relief rally pushed Bitcoin from $33,000 to the midline at $48,000.  

The short-lived rally ultimately failed, as the price broke below the channel and continued its decline, eventually reaching $17,996 by June 2022.

Given that a relief rally occurred just before the 2022 major breakdown, Rover believes this offers an important parallel for today’s market, which is currently experiencing a rebound from last week’s drop to $80,600, with Bitcoin now trading above $91,400.

Current Pattern Follows the Same Steps

Crypto Rover’s chart shows Bitcoin repeating similar stages in its current cycle. Beginning in 2023, the cryptocurrency climbed inside a rising channel, moving from $19,000 to $48,000. A more bullish leg in 2024 pushed the price toward $108,000, and the rally extended further in 2025, reaching an upper boundary above $126,600 in October, the current all-time high.

Since then, Bitcoin has reversed, approaching the lower boundary of the channel, where it recently found support above $80,000. Crypto Rover marked the area at $100,000 to $80,000 as the relief rally, mirroring the midline bounce observed in 2021. If the lower channel boundary fails, the chart projects a potential decline toward $43,500.

Interestingly, Bitcoin is trading at $91,735, up 5.65% over the past day, which reduces its monthly loss to 20% and puts it in the relief rally zone.

Other Experts Disagree

Indeed, other market experts also see parallels with the 2021 cycle but highlight bullish interpretations. For instance, Merlijn The Trader notes that Bitcoin has held the crucial $82,000 level and bounced, suggesting bullish potential. According to him, a break above the downtrend line could trigger a rally toward $180,000.

Similarly, Mr. Cryptowhale points to the rebound from long-term support and the potential formation of a double-bottom around $80,000. He believes there is a strong chance the market has already found its bottom, provided Bitcoin remains above the $78,000–$79,000 range, which he identifies as a critical invalidation zone for his bullish outlook.

Interestingly, the chart setup points to a likely surge toward $135,000, as the broader structure supports a continuation of the upward trend.

Experts Say Why No Other Asset Than XRP Experiences 45X Glitches

Abdulkarim Abdulwahab
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Experts Say Why No Other Asset Than XRP Experiences 45X Glitches

The XRP price anomaly on Kraken continues to spark discussions in the community.

It raises questions about why such extreme glitches occur almost exclusively with XRP.

On November 19, around 04:15 UTC, XRP briefly printed a candle as high as $91.60 on Kraken, representing roughly a 45x spike from its true market range near $2.16.

The glitch lasted only seconds before the price returned to normal levels. Yet the moment was enough to ignite new discussion across the XRP community.

Community Figures Question Why XRP Experiences All the Extreme Glitches

In a tweet, Rob Cunningham from KUWL.show questioned why these kinds of price distortions never seem to happen to other major digital assets. His post drew attention from long-time observers who have followed XRP’s unusual history of extreme wicks.

Community member Arthur pointed out that in all his years watching the market, he’s “never seen a glitch on another crypto,” at least not the extreme 20x–45x wicks that keep happening with XRP.

Another user, X Finance Bull, added that these spikes “always seem to pick XRP.”

These reactions tie into a long-running belief within the XRP community that such glitches aren’t random, but signs of deeper liquidity gaps waiting to be filled. While this idea is speculative, it resurfaces whenever a major XRP price anomaly occurs.

Community reactions
Community reactions

Why These Glitches Happen: Thin Liquidity and Distorted Order Calculations

Technical explanations for XRP’s price glitches are consistent. A recent analysis by an ICP ecosystem builder showed how exchanges sometimes calculate cost averages when only a fragment of an order fills at an extreme price.

Because XRP is divisible into very small units called drops, a tiny purchase at an outrageously high value can produce a distorted price print — even when the rest of the order executes normally.

For example, buying a single drop at $0.01 instead of its micro-value near $0.0000022 can register as if a full XRP was bought for $10,000. The overall order price doesn’t really change, but the incorrect price briefly appears on the chart.

When this happens during low-liquidity periods or thin order books, exchanges can show sudden spikes or dips, even though traders’ actual holdings aren’t affected.

Long History of XRP Price Anomalies

While the Kraken wick is the most recent example, XRP has one of the longest lists of confirmed pricing anomalies among large-cap crypto assets:

  • Kraken’s earlier $91.62 wick recorded minutes after a crash to $0.00272
  • Binance displayed XRP at $5,791 in October 2023
  • Gemini showed XRP at $50 after relisting in 2023
  • A Coinbase display issue in 2019 showing $7,308
  • CoinMarketCap briefly showed XRP at $161 million in 2023
  • Bitrue’s derivative market printing $0.0001 in 2023
  • Poloniex momentarily dropped XRP to zero in 2023

Users, charts, or platform statements have verified these cases. Meanwhile, none of them reflected actual order fills. This history fuels the community belief that “no other crypto sees glitches like XRP.”

While the technical cause is easy to explain, people still wonder why XRP is the only major coin that repeatedly exhibits these extreme anomalies.

Bitcoin Analyst Says XRP at $2 Is Worth More Than Solana at $200, Here’s What he Means

Mark Brennan
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Bitcoin Analyst Says XRP at $2 Is Worth More Than Solana at $200, Here’s What he Means

Discussions around the XRP value have grown louder as crypto community figures argue over whether the token deserves a much higher price. 

Notably, multiple XRP proponents insist that XRP trades far below its real value at the current price of around $2. For context, XRP currently trades for $2.19, up 3% in the past week. However, some XRP pundits have suggested that the token has the potential to reach $100 or even $1,000 in the near future.

Despite the confidence with which these proponents make these projections, critics have persistently pushed back, often highlighting XRP’s extensive supply of 60 billion tokens, saying the resulting market cap makes those predictions unrealistic.

Pundit Talks on Pessimism Around XRP Run

Nonetheless, XRP proponents have dismissed these concerns. Most recently, investor Jake Molter reminded the community that other major assets once made huge jumps in short periods. He noted that Ethereum rose from $9 to $361 in 6 months, and Solana jumped from $2 to $187 in 9 months. Molter argued that people should not dismiss the idea that XRP could see a similar run.

Market data shows Molter’s claims were largely correct. For context, ETH traded for around $8 in January 2017 but soared 5075% to $414 by June 2017. In addition, SOL, which changed hands for $1.51 in January 2021, rallied to $216 in September 2021. This marked a 14,204% increase within 9 months. Molter believes XRP could see similar rallies.

However, in response, another participant suggested that the earlier rallies happened under very different conditions because market caps were much smaller back then. Molter agreed with this point but said the market has changed in important ways. 

He explained that retail traders drove most of the old rallies with little support from institutions. However, today, institutions buy into the market in large numbers, which changes everything. He also pointed out that market caps grow over time as assets mature and insisted that people should not expect today’s market caps to look the same in the future. 

“XRP at $2 is Worth More Than Solana at $200”

Meanwhile, former CoinRoutes Chairman and Bitcoin advocate Dave Weisberger countered Molter’s point. He said XRP at $2 already holds a higher value than Solana at $200, suggesting that it would take XRP much more capital to soar further from the $2 level. 

“XRP at $2 is worth MORE than Sol at $200,” Weisberger said. This is largely accurate due to XRP’s larger circulating supply. Notably, with XRP boasting a circulating supply of 60.25 billion tokens, XRP is worth $120 billion at $2. Meanwhile, with SOL having a supply of 559 million tokens, a price of $200 means Solana has a worth of $111.8 billion.

Importantly, Weisberger stressed that a jump from $100 billion to $10 trillion demands far more than a move from $1 billion to $100 billion. According to him, members of the XRP community often focus too much on the token’s price per unit rather than the full value of the asset.

While Weisberger has admitted that he wants XRP to do well, he continues to challenge the more extreme predictions surrounding it. Last week, he addressed another claim from an analyst who argued that a collapse of global fiat currencies could trigger a major XRP price spike. 

Weisberger disagreed and said that even if fiat currencies completely collapsed, which he believes will not happen anytime soon, XRP would not benefit. He argued that XRP does best in a world where fiat currencies stay strong, so the XRPL can help improve foreign-exchange activity between them. 

Analyst Says ‘This Is the Fastest Road to a Higher XRP Price’ — All Other Options Are Much Longer

Abdulkarim Abdulwahab
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Analyst Says ‘This Is the Fastest Road to a Higher XRP Price’ — All Other Options Are Much Longer

XRP analyst Chad Steingraber argues that ETF-driven demand is now the primary force capable of pushing XRP’s price higher in the near term.

In a new series of posts, he states that the speed of ETF accumulation is outpacing all other catalysts. To him, this makes ETFs the most direct path toward a major price breakout for XRP.

Accelerating XRP ETF Accumulation

In his first update, Steingraber pointed to Bitwise’s expanding XRP position, noting that the firm now holds more than 80.5 million XRP, worth approximately $178.8 million. This latest figure builds on the firm’s new inflow of $7.46 million on Wednesday, the largest among all providers.

Notably, since launching last week, the Bitwise XRP ETF has continued to register new investments, with no outflows recorded yet. Meanwhile, a similar trend is visible across other XRP ETFs.

Canary Capital saw a $5.21 million inflow yesterday, bringing its assets under management to $336.98 million. Likewise, Grayscale and Franklin Templeton recorded inflows of $4.32 million and $4.83 million, bringing their AUM to $84.68 million and $76 million, respectively.

Cumulatively, XRP ETFs now hold $676.49 million in total assets. This comes just nine trading days after the first XRP ETFs launched, underscoring how quickly institutional positions are forming.

Screenshot 2025 11 27 at 83533 am
XRP ETF inflows

According to Steingraber, this pace will grow even faster as more funds enter the market. With three additional ETFs set to become active soon, he projects that average daily ETF share volume could rise by another $35 million.

This would place total daily ETF trading in the $75–$80 million range, significantly increasing the amount of XRP issuers must acquire.

The Daily XRP Drain

Based on these volume levels, Steingraber estimates that the combined ETFs could eventually need between 20 and 30 million XRP per day. Even using the conservative end of that range, he illustrates the accumulation timeline:

Seven funds acquiring 20 million XRP in a single day would mean 100 million XRP across five trading days. Over one month, this could reach 400 million XRP, and 4.8 billion XRP over the course of a year.

Steingraber argues that it will not take a full year for this to affect the market. If prices do not rise sharply, the supply shock could become visible within months.

Why This Path “Is Faster Than Any Other”

Steingraber argues that no other catalyst — including utility growth, partnership news, or a broader market bull run — can match the speed of ETF-driven absorption.

The rate at which institutional funds are pulling XRP off the market is, in his view, unprecedented compared to previous adoption phases.

ETFs act as a direct pipeline between investor capital and XRP’s circulating supply. As inflows scale, issuers must acquire more XRP to back new shares. This tightens supply even when spot markets appear quiet due to OTC purchases and delayed T+1 settlement cycles.

Visible Impact May Arrive Suddenly

Despite growing ETF holdings, XRP continues to trade around the $2 range, partly because early demand does not immediately reflect on exchanges. Commentators believe this is because XRP OTC buying masks buying pressure until accumulation becomes large enough to strain available liquidity.

Steingraber suggests that once all seven ETFs are fully active and daily acquisition reaches the projected 20–30 million XRP range, the market will begin to feel the supply squeeze far more quickly. If prices remain low into this phase, the timeline to a supply shock shortens significantly.

According to Steingraber, this is why ETF-driven demand is “the fastest road” to a higher XRP price — and why all other paths, regardless of merit, will take much longer to influence the market at scale.

SBI CEO Says This XRP Venture Will Be Very Interesting

Lele Jima
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SBI CEO Says This XRP Venture Will Be Very Interesting

Yoshitaka Kitao, CEO of SBI Group, has drawn attention to an XRP-focused initiative he believes will be of interest.

Speaking during a recent shareholder presentation, Kitao outlined SBI Group’s involvement in the Evernorth XRP treasury, describing it as a strategic investment vehicle designed to position the company for long-term value appreciation within the XRP ecosystem. 

Although Kitao delivered the presentation in October in Japanese, prominent community figure Crypto Eri shared an English translation on X yesterday. 

Evernorth XRP Treasury Venture 

His remarks follow Evernorth’s announcement that it plans to merge with Armada Acquisition Corp II to create what it calls the world’s largest XRP treasury. The company also disclosed a $1 billion fundraising effort for the initiative, led by SBI Group. 

The Japanese financial giant contributed $200 million to the treasury. This sum is earmarked for purchasing XRP directly from the open market. Ripple, SBI’s longtime partner, is also contributing a combination of XRP and cash worth over $500 million. 

Ripple co-founder Chris Larsen is also participating and has already made a personal contribution of 50 million XRP. Other notable investors, including Kraken, Pantera Capital, and Arrington Capital, collectively contributed over $600 million.

An Interesting Venture 

The merger is expected to be finalized in the first quarter of 2026, after which the combined entity will go public on Nasdaq under the ticker XRPN. SBI CEO Yoshitaka Kitao described the initiative as “very interesting,” highlighting the high expectations surrounding the venture.

As an investor in the XRP treasury initiative, SBI stands to benefit directly from any appreciation in the stock’s value following the public listing, meaning Evernorth’s success could significantly amplify its investment. 

As of November 4, Evernorth reported a balance of 473,276,430 (473.27 million) XRP, worth $1.03 billion at current market prices. These tokens are held across multiple XRPL-based wallets, with Evernorth (1) and (2) wallets holding roughly 45 million and 42 million XRP, respectively. 

Will Shiba Inu Test Key Fibonacci Levels After Weekly Rebound?

Mark Brennan
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Will Shiba Inu Test Key Fibonacci Levels After Weekly Rebound?

Shiba Inu has rebounded from a weekly downtrend, as the leading meme coin prepares to test Fibonacci resistance levels.

Looking at the price charts, it is notable that Shiba Inu is quietly clawing its way back after a choppy week. Currently, SHIB trades around $0.00000857, only about 1% lower on the 24-hour chart despite sharp swings.

Price spent the early part of the week grinding lower before finding a floor near the bottom of its recent $0.00000833–$0.00000869 range. From there, the token staged a strong rebound into late November, printing a new local high at $0.00000892 before easing back into a tight consolidation zone.

Beneath the surface, liquidity remains deep. Specifically, SHIB’s market cap hovers near $5 billion, down 1.04% in the past day. Zooming out the view, the 7-day chart shows a modest 1.3% decline. Elsewhere, the 14-day performance reveals a much steeper 12.3% drop.

Amid this longer-term decline, market watchers are assessing the extent to which bulls can continue defending the current support zone and whether the latest bounce signals early accumulation.

Shiba Inu Price Analysis

On the weekly chart, Shiba Inu remains locked in a clear downside structure. A series of successive red candles seen in the last few weeks show that the prior rally has been largely unwound.

The price is now trading below the key Fibonacci retracement bands drawn from the last major upswing. SHIB is sitting in the lower extension zone between the earlier swing low around $0.000007 and the 1.0 Fibonacci extension at $0.000010. 

Shiba Inu
Shiba Inu

Notably, the next key battleground now sits overhead. The first hurdle for buyers is a recovery of the prior swing low and 1.0 Fibonacci level. A weekly close back above this band would mark the first sign that downside momentum is easing and could open the way toward the 0.786 retracement around $0.0000113, followed by the 0.618 level near $0.0000124.

If bulls fail to push SHIB back above the 1.0 Fib and price rejects from below that level, the focus shifts back to the downside scenario. In that case, the chart leaves room for another leg lower toward the 1.618 extension at roughly $0.0000064.

The Stochastic RSI reinforces this picture of exhaustion rather than confirmed reversal. Both lines are pressed into oversold territory, with readings near 7 and 4, showing that downside momentum has stretched but not yet produced a strong bullish crossover. Any short-term bounce would still sit within a broader weekly downtrend unless SHIB can reclaim the broken Fibonacci levels above, particularly the 0.786 zone.

Shiba Inu Liquidation Data

Liquidation data for Shiba Inu shows that the bulk of recent pain has fallen on over-leveraged longs. Over the past 24 hours, roughly $139.6K in positions were liquidated, with about $120.5K of that coming from long traders and only $19.1K from shorts.

Earlier windows tell a similar but fading story: the 12-hour tally is just $5.34K (about $3.82K long vs. $1.51K short), while the 4-hour and 1-hour figures are minimal and entirely long-side.

Shiba Inu Liquidation Data Coinglass
Shiba Inu Liquidation Data | Coinglass

When liquidation spikes subside after a long-heavy flush, markets often shift from sharp trending moves into a period of consolidation or a relief bounce. With most recent liquidations hitting longs and very few shorts exposed, the next direction for SHIB is likely sideways to mildly higher.

Tether Emerges as the Largest Private Holder of Gold Outside Central Banks

Zabi
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Tether Emerges as the Largest Private Holder of Gold Outside Central Banks

Tether has quietly built one of the world’s largest private gold portfolios, according to new analysis from Jefferies.

Indeed, the scale of its holdings now places the stablecoin issuer ahead of all non-state buyers and close to the reserves of several sovereign central banks.

Tether’s Gold Stockpile Now Rivals National Reserves

In a recent research note, Jefferies stated that Tether controls 116 tons of physical gold. Notably, this level is comparable to the holdings of South Korea, Hungary, and Greece, according to the bank.

The investment bank noted that no private buyer holds more gold than Tether. Consequently, the firm is now positioned just behind government monetary authorities in global rankings.

This rapid climb has drawn wider attention across financial markets, where Tether’s activity is no longer viewed as a niche development within the digital asset sector.

Large Purchases Influence Market Demand

According to Jefferies, Tether’s buying represented about 2% of global gold demand last quarter. It also accounted for nearly 12% of central-bank purchases during the same period.

The bank noted that the company’s rapid accumulation has likely tightened short-term supply. In turn, this appears to have strengthened sentiment and encouraged further speculative interest in gold.

As of press time, Gold trades at $4,163 per ounce on the FX market, up 2.43% over the past week.

Investors cited by Jefferies expect Tether to purchase another 100 tons of gold in 2025. The company is on track to deliver around $15 billion in profit this year, giving it ample capacity to continue buying.

Strategic Expansion Across the Gold Industry

Tether’s interest in gold extends beyond holding bullion. This year, the company reportedly invested over $300 million in precious-metal producers.

One major move came in June, when Tether acquired a 32% stake in Elemental Altus Royalties, a Canadian royalty firm. Meanwhile, The Financial Times reported that Tether is also exploring other segments of the gold supply chain, including mining, refining, trading, and royalty operations.

Tokenized Gold Becomes a Major Focus

Alongside physical holdings, Tether is expanding its gold-backed token, Tether Gold (XAUt). The token is supported by bullion stored in Switzerland.

Blockchain data show that the supply of XAUt has doubled in six months. Specifically, since August, Tether has added 275,000 ounces, worth $1.1 billion, to support new token issuance.

Tether Gold Market Cap
Tether Gold Market Cap

Jefferies said Tether is betting on wider adoption of tokenized gold. The company argues that tokenization avoids the drawbacks of physical storage, futures costs, and ETF fees.

Growing Resemblance to Central-Bank Operations

Tether’s expanding footprint is increasingly reflected in how it manages its reserves and daily operations. The company mints and redeems USDT for verified customers, effectively adjusting supply in a manner reminiscent of central bank liquidity management.

Its reserves include short-term US Treasurys, gold, and Bitcoin. By earning interest on Treasurys while issuing a non-yielding token, Tether’s model mirrors how central banks generate income.

The firm also employs policy-style tools, such as freezing addresses for law enforcement and discontinuing support for blockchains deemed too risky, to maintain stability.

Ultimately, these practices have made Tether’s ecosystem look increasingly like a private-sector counterpart to a central bank, underscoring its growing influence across both digital and traditional financial markets.

Tether CEO Reacts as American Credit Rating Agency Calls Tether a High-Risk Stablecoin

Mark Brennan
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Tether CEO Reacts as American Credit Rating Agency Calls Tether a High-Risk Stablecoin

S&P Global Ratings, the American credit rating agency, has assigned Tether its lowest possible rating, drawing a strong rebuttal from the company behind the world’s most widely used dollar-pegged token.

S&P Issues ‘Weak’ Assessment for USDT

On Wednesday, S&P Global Ratings assigned Tether its lowest stablecoin risk rating: “5 (weak)”. This decision reflects ongoing concerns about reserve transparency and the composition of assets backing USDT.

According to S&P, Tether still provides inconsistent disclosure around its holdings. Moreover, the agency emphasized that a growing share of the reserves now consists of higher-risk assets, such as Bitcoin, gold, corporate bonds, and secured loans. This introduces greater exposure to market and credit volatility.

S&P highlighted that Bitcoin alone accounts for about 5.6% of USDT’s circulating supply, exceeding the company’s 3.9% overcollateralization buffer. Therefore, the agency warned that significant declines in Bitcoin or similar assets could weaken the foundation supporting USDT redemptions.

Beyond asset mix, S&P pointed to credit, market, interest-rate, and currency risks within Tether’s reserve structure. It also noted limited visibility into the quality of custodians and counterparties. 

Even so, the agency acknowledged that USDT has consistently maintained strong price stability during recent periods of market stress.

Tether CEO Criticizes Rating Approach

Tether CEO Paolo Ardoino responded quickly to the downgrade, arguing that the rating reflects outdated evaluation methods rather than the realities of digital-asset markets. 

He said traditional credit frameworks, designed for banks with long histories and opaque balance sheets, are ill-suited to companies with different structures and faster reporting cycles.

Furthermore, Ardoino pointed out that these same legacy models once supported major financial institutions that later collapsed, suggesting they may not offer a reliable blueprint for assessing crypto issuers.

He described Tether as “overcapitalized” and said traditional finance remains uncomfortable with firms that operate outside what he called a “broken financial system.”

USDT Issuer Defends Its Reserve Management

Tether expanded on this criticism in its formal response, saying S&P’s assessment misrepresents the company’s performance and resilience. Specifically, it emphasized its ability to navigate banking disruptions, exchange failures, and sharp market swings while maintaining access to redemptions.

The company stated that it has issued about $184 billion in USDT since launch. It also emphasized that it continues to hold sufficient reserves, including U.S. Treasuries and other assets, to support withdrawals at all times.

Earlier this week, the Financial Times reported that Tether has become the largest independent holder of gold, highlighting its rising exposure to alternative reserve assets.

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