S&P JUST HIT TETHER WITH A “WEAK” RATING

S&P Global downgraded Tether’s stability score to its lowest tier, citing rising reserve risk and limited transparency.

Their key factors behind the cut:

⚠️ $USDT’s exposure to “risk assets” like $BTC, gold, corporate bonds, and loans has climbed from 17% to 24%
⚠️ #Bitcoin alone now makes up ~5.6% of reserves
⚠️ Disclosure gaps remain around custodians and underlying counterparties
⚠️ No fully segregated reserve structure

S&P’s view: in a severe market downturn, these risks could make it harder for $USDT to maintain its peg.

Tether pushed back on the downgrade, maintaining that its reserves remain strong -- but for traders and institutions, it’s still a data point worth noting.

Not a reason to panic, just something to keep on the radar