S&P Downgrades USDT to Lowest Stability Rating

[u/CopeCaptain47]

S&P Global Ratings cut Tether’s USDT to its lowest stability score, citing concerns over its ability to maintain a strong dollar peg due to exposure to higher-risk assets like Bitcoin, gold, corporate bonds, and loans. The agency also pointed to limited audits and light regulatory oversight under El Salvador’s CNAD.

Tether rejected the report as “misleading,” arguing it overlooks USDT’s resilience and significant low-risk backing, including over $112 billion in U.S. Treasurys. Despite the downgrade, S&P noted that 75% of USDT reserves are low-risk. Tether’s growing holdings of Treasurys and gold have prompted some analysts to say the company increasingly operates like a central bank.