Gold and bitcoin buys triggered Tether downgrade, says S&P
Agency explains why it gave world’s largest stablecoin its lowest rating for stability
When S&P Global Ratings downgraded Tether’s USDT stablecoin last month, it triggered a war of words.
In the decision, published on November 26, the rating agency said the world’s largest stablecoin, with a notional market capitalisation approaching $185 billion, had increased its relative holdings of high-risk assets in its reserves.
This had caused the agency to lower its stability rating for USDT from ‘constrained’ to ‘weak’ – the lowest classification on S&P Global’s five-point scale.
Andrew O
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