S&P Downgrades USDT's Dollar Pegging Capability to Lowest Rating

On the 26th, S&P Global Ratings (hereafter S&P) downgraded its rating for the US dollar stablecoin 'USDT', issued by Tether, to the lowest level of '5 (Weak)'.

This rating specifically assesses the ability to maintain the value of one dollar. The previous rating was '4 (Constrained)', but the downgrade was primarily due to an increase in high-risk assets held as backing over the past year.

While S&P notes that the value of USDT has been relatively stable over the past few years and this past year, the value of Bitcoin held as reserve assets that circulate supply...