S&P Global Ratings Downgrades Tether's USDT Stability

According to BlockBeats, S&P Global Ratings has downgraded the stability rating of Tether's USDT stablecoin to the lowest level, citing concerns over its ability to maintain its peg to the U.S. dollar. The agency warned that a decline in Bitcoin prices could lead to under-collateralization risks for the stablecoin. On Wednesday, analysts at the rating agency lowered USDT's stability rating from 'constrained' to 'weak.' S&P stated that this assessment reflects an increase in exposure to high-risk assets within USDT's reserves over the past year. These assets include Bitcoin, gold, secured loans, and corporate bonds, alongside limited disclosure of information.