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S&P assigns 'weak' score to USDT citing Bitcoin reserve risks
11/28/2025, 17:06
AI SUMMARY
●S&P Global assigns USDT a weak score of 5 due to reserve composition
●Concerns cite 5.6% Bitcoin reserves exceeding the 4% safety buffer
●Analysis suggests a 30% BTC drop could threaten the peg mathematically
Market participants are discussing a risk assessment by S&P Global regarding Tether (USDT), which has reportedly assigned the stablecoin a score of 5 (weak). The assessment highlights that Tether's 5.6% Bitcoin reserves exceed its 4% safety buffer.
Analysis circulating within the trading community suggests that due to this reserve composition, a 30% decline in Bitcoin prices could mathematically threaten the peg's stability. This represents one of the first standardized risk assessments of the stablecoin.
This development is viewed by some observers as providing institutions with formal documentation regarding stablecoin risks, contrasting with recent minting activity in competitors like USDC.