S&P downgrades Tether’s stability rating to ‘weak’ as Bitcoin holdings exceed safety buffer

Tether’s ability to maintain its dollar peg was downgraded by the S&P Global Ratings agency, citing a dangerous shift toward riskier assets in the world’s largest stablecoin’s reserves. On Tuesday, the rating agency reassessed Tether to 5, labeled “weak,” from 4, labeled “constrained.” The Stablecoin Stability Assessment now puts Tether in the same category as TrueUSD, which has lost access to nearly all its reserves. Meanwhile, Tether’s largest competitor, Circle’s USDC, holds an S&P rating of 2, labele ...