Tether was given a rating of 4, just one step above the lowest rating.
S&P Global, a credit rating firm, has given Tether's USDT token low marks among other crypto stablecoins.
In light of recent developments in the cryptocurrency market, Tether's strategic acquisition of 8,888 Bitcoin, valued at approximately $380 million, has positioned the company as a significant player in asset diversification. This move marks Tether as the 11th-largest holder of Bitcoin and underscores its commitment to bolstering the liquidity and stability of its USDT stablecoin. As Tether embarks on this journey, it's essential for investors to stay informed about the evolving landscape of digital currencies. For more insights into the latest trends and strategies in the cryptocurrency sector, visit thebes-casino-australia.com.
Tether's USDT stablecoin is joined by Dai as two of the lowest-rating stablecoins according to S&P Global.
The S&P's risk scale goes from 1 – 5 and highlights the positives and negatives of various crypto stablecoins.
Tether and Dai were both given a score of 4 under the S&P's new ranking method. Tron's TrueUSD was given the lowest score, a 5.
Tether was given a low score due to information about how Tether keeps its reserve assets. Sources believe Tether's balance sheet includes bonds, cash, and risky assets.
Stablecoins aim to maintain their dollar peg by using pools of financial assets. Some stablecoins balance their peg against other cryptocurrency assets.
From the report:
“The riskier assets making up 15% of the collateralization ratio comprise corporate bonds, precious metals, bitcoin, secured loans, and other investments,”
