S&P Global has once again reminded the market of an unpleasant truth: USDT, the world's largest stablecoin, remains the least transparent among critical financial instruments in the industry.
In its latest rating, the agency gave Tether a score of '5 — Weak', which is the lowest on the stability scale.
This is not just a number. It is a signal for regulators, institutions, and the entire crypto market:
the dominance of USDT does not equal trust.
🔍 What exactly did S&P not like
The report lists key risks:
1. Transparency of reserves remains weak
Tether publishes 'auditor conclusions', but does not undergo a full independent audit, which the market has long demanded.
2. Reserves are not just U.S. government bonds
S&P points to the presence of 'volatile components', including gold.
It is precisely because of the lack of verified data that critics joke:
'I can also say that I bought 80 tons of gold — and provide as much evidence as Tether.'
3. There is no clear asset segregation
Tether's reserves are legally not separated from corporate assets.
In case of force majeure, this creates systemic risk.
4. Redemption restrictions
Retail users cannot directly redeem USDT → only through a partner or exchange.
For S&P, this is a strong negative factor.
🏦 Tether's position
The company responded sharply:
called the assessment 'inaccurate',
reported large Treasury holdings,
highlighted billion-dollar profits,
reminded of USDT's dominance in the world (over 70% of the market).
The argument is strong, but not new: Tether always emphasizes the market, not transparency.
🌪 Is this a threat to the market?
So far — no.
USDT is too big, the system is too dependent, liquidity is at a record high.
But a new trend is forming on the horizon:
📉 Institutions want regulated stablecoins
Circle (USDC), PayPal USD, bank-licensed-based stablecoins.
In other words, the market is moving towards complete transparency and control.
S&P is actually pushing precisely for this.
💡What an investor should know
There is no panic: USDT is stable and has gigantic liquidity.
But the risks of Tether are not fairy tales, but structural problems.
If strict rules are implemented for global stablecoins, USDT will be the first under fire.
In the long term, the 'race for transparency' will become the main theme of the stablecoin market.
🧭 Summary
This is not the 'end of USDT'.
This is another reminder that the most important asset of the crypto market stands on a foundation that the market cannot verify 100%.
Sooner or later, the question of Tether's transparency will again become key.
And S&P is only accelerating this moment.
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