S&P downgrades USDT’s dollar peg rating to lowest score
NegativeCryptocurrency
- S&P Global Ratings has downgraded Tether's USDt to its lowest stability rating, raising significant concerns about the stability of its dollar peg. Tether has responded by labeling the report as misleading, indicating a potential disconnect between the rating agency's assessment and the company's internal evaluations.
- This downgrade is critical for Tether as it may affect investor confidence and the overall perception of USDt in the cryptocurrency market. A lower rating could hinder Tether's ability to maintain its peg to the dollar, impacting its utility as a stablecoin.
- Amidst this negative development, Tether is actively pursuing growth strategies, including investments in Latin American cryptocurrency infrastructure and increasing its gold reserves. These efforts aim to bolster institutional adoption of USDt and enhance its market position, reflecting a broader trend of stablecoin issuers seeking to strengthen their foundations in a volatile market.
— via World Pulse Now AI Editorial System
