11/26/2025
180 words
1 min read
S&P Downgrades Tether's USDT Stability to 'Weak' Due to Bitcoin Backing Concerns
Overview
S&P Global Ratings has recently downgraded Tether’s USDT, expressing concerns regarding its stability due to its backing by Bitcoin. Tether has publicly disagreed with this assessment.
What Happened
S&P Global Ratings issued a downgrade of Tether’s USDT, highlighting that the stablecoin could face significant risks if there is a decline in Bitcoin’s price. The rating agency’s concerns stem from the reliance of USDT on Bitcoin for its backing, which raises questions about its overall stability in volatile market conditions.
In response to the downgrade, Tether has expressed disagreement with S&P’s evaluation, indicating confidence in their stablecoin’s structure and backing.
Impact on the crypto market
- The downgrade may lead to increased scrutiny of stablecoins, particularly those backed by volatile assets.
- Market participants might reassess their reliance on USDT for stability in trading and transactions.
- Tether’s disagreement with the downgrade could influence investor sentiment and trust in the stablecoin.
- The situation highlights the potential vulnerabilities within the stablecoin market.
- Ongoing discussions about stablecoin regulation may intensify as a result of this rating change.
Updated: 11/26/2025, 9:20:41 PM
