In accordance with TechFlow, on November 26, S&P Global Ratings downgraded Tether's USDT stability assessment to the weakest level 5 on its scale, citing increased risk in its reserves. According to S&P's report, Bitcoin now accounts for approximately 5.6% of USDT's circulation, exceeding the 3.9% reserve buffer indicated in Tether's latest Q3 proof. This suggests that a significant drop in Bitcoin's price could lead to USDT being under-collateralized. As of September 30, high-risk assets, including Bitcoin, gold, secured loans, and corporate bonds, accounted for 24% of Tether's reserves, up from 17% a year earlier. S&P noted that these risk exposures, along with ongoing issues of reserve transparency, were the main reasons for the downgrade.
S&P Downgrades Tether Stability Rating to Weakest Level, Citing Reserve Risks
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