S&P Global Downgrades Tether's USDT to Lowest Rating of 5 Over Reserve Transparency Concerns

S&P Global downgraded Tether's USDT stablecoin to a rating of 5 (weak), the lowest on its assessment scale, citing persistent disclosure gaps regarding custodians and counterparties. The rating agency highlighted concerns about high-risk asset allocations including Bitcoin, gold, corporate bonds, and secured loans. Tether CEO Paolo Ardoino dismissed the assessment, stating that traditional credit rating methodologies do not apply to digital asset issuers.