Tether Faces Downgrade By S&P Global Amid Concerns Over Disclosure And Assets Holdings 📉
Tether, the issuer of the world's largest stablecoin USDT, faced a downgrade by S&P Global. The agency highlighted persistent disclosure gaps and an increased share of high-risk assets in Tether's reserves as the reasons behind this decision.
The assets in question include Bitcoin, gold, corporate bonds, and secured loans, each posing credit, market, interest rate, and foreign exchange risks. Tether's CEO Paolo Ardoino countered the downgrade, arguing that Tether remains overcapitalized, devoid of toxic reserves, and that traditional rating models are unsuited for digital asset issuers.
Despite S&P's concerns, Tether stands firm, boasting of its stability through financial crises and maintaining full redemption capability. It claims substantial reserves and is now recognized as the largest independent holder of gold, having purchased more gold recently than any central bank globally.
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