Tether’s Downgrade: Implications for Crypto Treasury Management and the Rise of USDC
Tether’s USDT has been downgraded to a “weak” risk rating by S&P Global, causing some serious alarm bells to ring in the crypto community. This isn’t just a red flag for the world’s largest stablecoin; it’s a black cloud hanging over the entire crypto market. Tether’s opacity and its move towards riskier reserve assets raise questions of reliability, and businesses and investors are paying attention. With USDC being seen as a safer bet, the question becomes: where do we go from here?
Tether’s Risk Profile Takes a Hit
According to S&P, Tether’s downgrade is mainly due to two factors. First, their growing exposure to riskier reserve assets. Second, a lack of transparency. They’re apparently moving away from the relatively safe U.S….
