Crypto’s Most Trusted Stablecoin Given Lowest Possible ‘Weak’ Rating By Major TradFi Agency

Tether’s USDT, the dominant dollar-pegged stablecoin with nearly $185 billion in circulation, just took a hit from traditional finance rating powerhouse S&P Global, as it downgraded its assessment of USDT’s ability to maintain its peg from 4 to 5, which is the weakest score on its associated scale.

S&P originally rolled out its stablecoin rating framework in 2023 to gauge risks like liquidity, governance, and asset backing in the emerging sector. According to their recent report on…