Catenaa, Monday, December 1, 2025- S&P Global Ratings cautioned that Tether’s USDT may face pressure on its one-to-one dollar peg as exposure to declining assets increases.
The assessment points to weaker market conditions surrounding Bitcoin and other holdings in Tether’s reserve mix.
Analysts said recent market swings have reduced the value of several assets that support USDT’s backing.
They noted that peg risk grows when reserve quality drops during periods of volatility. They added that short-term stress events can strain liquidity across major stablecoins.
S&P’s report highlights the scale of activity tied to USDT. It remains the largest stablecoin by circulation, often serving as a key source of liquidity for crypto trading.
The assessment signals concern about how quickly reserves can be converted into cash during a market shock.
Market observers say the warning may unsettle traders who rely on USDT during periods of high volume.
They expect exchanges to monitor flows closely. Some analysts believe the notice could shift demand toward alternatives with stronger transparency frameworks.
Tether has stated in past updates that it maintains high-quality reserves and strong liquidity.
The company has pointed to recent attestation reports when addressing questions about stability. It has also said that redemptions remain open and operational during market swings.
