Citing Coinpedia, S&P Global Ratings downgraded Tether’s USDT to its lowest 'Weak' rating, highlighting growing risks from Bitcoin exposure and a shift toward higher-risk assets in reserves. Experts warn that Bitcoin’s 5.6% reserve share now exceeds Tether’s 3.9% safety buffer, potentially destabilizing the $184 billion stablecoin. The downgrade also points to a lack of transparency and insufficient collateral, raising concerns for users in emerging markets who rely on USDT as a dollar substitute.
S&P Downgrades Tether's USDT to 'Weak' Amid Rising Reserve Risks
CoinpediaShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.