S&P Global Ratings Downgrades Tether's USDT to 'Weak' Stability Rating

S&P Global Ratings downgraded Tether's USDT stablecoin to 'weak' from 'constrained', citing exposure to high-risk assets and limited reserve transparency. The agency warned that Bitcoin holdings—now 5.4% of reserves—combined with other volatile assets could reduce collateral coverage if valuations decline. Tether has not conducted a complete audit since inception and lacks direct redemption channels for token holders, according to S&P.