www.bloomberg.com
S&P Global Ratings downgraded Tether’s USDT peg maintenance ability to its lowest rating, citing potential undercollateralization risks. They believe a Bitcoin price decline could significantly impact Tether’s reserves, jeopardizing its ability to maintain the 1:1 USD peg. This downgrade reflects concerns about the transparency and composition of Tether’s backing, particularly its reliance on potentially volatile assets like Bitcoin. S&P emphasizes the importance of robust reserve management for stablecoins to withstand market fluctuations and maintain stability.
