S&P Global: Lowers USDT's Dollar Pegging Capability to Lowest Level

BlockBeats News, November 26th, according to 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 drop in Bitcoin's price could lead to the stablecoin facing under-collateralization risks.

On Wednesday, the rating agency analysts downgraded the stability rating of USDT from "Restricted" to "Weak." S&P stated that this assessment "reflects the increase in high-risk asset exposure in USDT reserves over the past year," including assets such as Bitcoin, gold, secured loans, and corporate bonds, while also considering the limited disclosure of information.