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:
“Bitcoin represents 5.6% of USDT in circulation, exceeding the 3.9%…
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