S&P Downgrades Tether USDT Stability, Citing Peg Risks

S&P Global Ratings has downgraded Tether's USDT stablecoin to its lowest stability rating, citing risks from volatile reserves like Bitcoin and insufficient audits. Despite this, 75% of reserves are in low-risk US Treasurys, but concerns persist over maintaining the dollar peg amid regulatory scrutiny. S&P highlights Bitcoin exposure at 5.6% of USDT circulation, exceeding safe [...]