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S&P cut USDT to its weakest stability tier and stirred new doubts around Tether’s dollar peg. The report said Tether holds volatile assets like Bitcoin, gold, and corporate debt.
Analysts warned that a sharp drop in these assets could weaken the backing behind the largest stablecoin. That risk created fresh tension across traders who track reserve strength.
Tether rejected the assessment and said the report ignores its scale and global footprint. The company also noted that most reserves remain in short-term US Treasurys.
The review arrived during a major year for stablecoins as new US rules shaped the market and total supply crossed $300 billion.
Stablecoin: a token pegged to a fiat currency.
Treasurys: short-term government debt seen as low risk.
