Tether Suffers Downgrade as S&P Raises Stability Concerns

S&P Global Ratings has downgraded Tether’s stability rating, citing concerns over volatile assets and a lack of transparency in reserves. Despite the downgrade to ‘weak,’ CEO Paolo Ardoino defends Tether’s reserve strategy, asserting its strength and profitability. This move raises anxieties among traders, particularly in China, where USDT plays a crucial role in underground markets. The uncertainty has triggered discussions about market sentiment and potential impact on stablecoin trading pairs.