S&P Global: Downgrades USDT's Ability to Maintain Dollar Peg to Lowest Rating
According to ChainCatcher, citing Bloomberg, S&P Global Ratings has downgraded Tether's USDT stablecoin's ability to maintain its peg to the US dollar to the lowest rating, warning that a decline in bitcoin prices could lead to under-collateralization risks for the stablecoin.
On Wednesday, analysts at the rating agency lowered USDT's stability rating from "constrained" to "weak." S&P stated that this assessment "reflects the increased exposure to high-risk assets in USDT reserves over the past year," including bitcoin, gold, secured loans, and corporate bonds, while also taking into account the limited disclosure of information.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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