S&P Global Ratings Cuts USDT Stability Assessment to "Weak"

S&P Global Ratings downgraded Tether's USDT stablecoin stability assessment to "weak" from "limited" on Wednesday, Bloomberg reports. The rating agency cited USDT's increased exposure to higher-risk assets over the past year, including bitcoin, gold, secured loans, and corporate bonds. S&P analysts warned a decline in bitcoin prices could pose collateral insufficiency risks for the stablecoin and noted limited transparency in disclosed information.