In accordance with Bpaynews, S&P Global Ratings has downgraded Tether’s stability assessment to level 5, the lowest in its rating system. The downgrade reflects increased reliance on high-risk reserve assets, particularly Bitcoin, which now accounts for 5.6% of USDT’s total circulation. The move has raised concerns about USDT’s ability to maintain its peg amid potential market volatility and declining Bitcoin values. Analysts warn that the downgrade could impact investor confidence and liquidity across exchanges that rely on USDT as a stablecoin.
S&P Global Downgrades Tether's Stability Assessment to Lowest Level
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