S&P downgrades to $USDT with its lowest rating and could lose its parity with the dollar:
S&P Global Ratings has just downgraded USDT to its lowest level of stability. A rare decision that targets the most used stablecoin in the world and raises doubts about its ability to maintain its peg to the dollar. At a time when regulators are tightening the noose around cryptocurrencies, this assessment reignites debates about the solidity of Tether's reserves and the systemic risks that stablecoins pose to the entire market.
S&P Global Ratings granted USDT, the stablecoin issued by Tether, the lowest score on its stability scale, highlighting risks considered structural in the company's reserve model, while the issuer seeks a valuation of 500 billion dollars.
The agency questions Tether's ability to maintain parity with the dollar under certain market conditions, especially during periods of stress. It states that the reserve portfolio includes a proportion considered too high of volatile or illiquid assets.
And what do you prefer $USDT or $USDC ?
remember that other stablecoins have already lost their parity like in the case of USDX and deUSD.
