S&P Global Ratings downgrades USDT's stability rating to minimum level
S&P Global Ratings has downgraded the stability rating of the USDT stablecoin to the lowest on its scale. This decision comes amid concerns about the ability of USDT to maintain its peg to the US dollar, as Tether was unable to provide sufficient evidence of its asset backing. It is noted that a significant portion of USDT reserves is tied to high-risk assets such as bitcoin and corporate bonds, which increases the likelihood of a drop in the value of the stablecoin.
Source Incrypted
Tether has denied the agency's information, claiming that it does not reflect the real state of affairs and is misleading. The company also noted that approximately 75% of its reserves are held in US Treasury bonds and other low-risk instruments. Recent reports on Tether's assets, in particular the growth of gold reserves, have contributed to discussions about its sustainability in the face of new legislative initiatives on stablecoins in the United States.
This rating change is important for the cryptocurrency market amid growing demand for stablecoins and a recent increase in their capitalization. The developments may affect investor confidence in USDT, especially given the increase in the total market capitalization above USD 300 billion and the adoption of the new Genius Act in the United States, which seeks to regulate the digital asset sector.
