Tether’s Downgrade: What It Means for Crypto Banking and Stablecoins
Tether just got downgraded to junk status by S&P Global, and it’s created quite the stir. This downgrade is a big deal, especially for the crypto banking scene. And it’s already making waves as firms are scrambling to react to the fallout. Let’s dive into what’s going on and what it could mean for us.
The Downgrade and Its Effects
Tether (USDT) now has a rating of “5 (weak)” which is the lowest possible score on S&P’s scale. This comes from Tether’s growing exposure to risky assets like Bitcoin and gold. With this downgrade, regulators in Asia and Europe are targeting Tether, and the scrutiny is real.
Many companies relying on USDT are likely feeling the heat. The downgrade raises the question of liquidity, especially…
