S&P Global Ratings downgraded Tether’s USDt to its lowest stability rating, raising concerns over its dollar peg. Tether classified the report as “misleading.”
S&P Global Ratings has downgraded Tether’s USDt to the lowest score on its stablecoin stability scale, questioning the token’s ability to maintain its dollar peg.
The “weak” assessment was due to several factors, including Tether backing USDt (USDT) with “higher-risk” assets such as Bitcoin (BTC), gold, loans and corporate bonds that are subject to higher volatility, according to S&P Global. The report read:
Tether is headquartered in El Salvador and is regulated according to the National Commission of Digital Assets (CNAD), which has looser requirements for reserve assets backing stablecoins, S&P said.
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