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.
You may also like
New York Federal Reserve official: U.S. Treasury purchases have no preset path, will closely monitor financing market pressures in October
Lorie K. Logan, head of the New York Fed's Markets Group, stated that the Federal Reserve will continue to assess the reserve levels within the banking system. The purchase of U.S. Treasuries for reserve management does not follow a predetermined path and may be adjusted in the future based on market conditions.
Structure Therapeutics CMO Blas Coll Crespo disposes of USD 124,008 common shares
DigitalOcean CEO Srinivasan Padmanabhan disposes of $1.6 million in common shares
Labcorp Reaffirms Long-Term Earnings Outlook
Crypto prices
More
