S&P Global Ratings has lowered its stability assessment of Tether's USDT stablecoin to the "weakest" level, citing concerns about reserve composition and risk exposure. This downgrade suggests USDT's buffer against Bitcoin price volatility is insufficient. The report highlights persistent issues with Tether's transparency regarding custodians and asset details. S&P points to the increased exposure to riskier assets, now 24% of reserves, including Bitcoin, gold, secured loans, and corporate bonds. Information on these investments remains limited, raising further questions. While the assessment is currently negative, S&P indicates potential for improvement. Reducing exposure to higher-risk assets and providing more comprehensive information about reserve composition and the creditworthiness of custodial partners could positively impact future assessments. The market is watching closely to see how Tether responds to these concerns. ```