S&P Stablecoin Rankings: Tether Constrained, While USDP Emerges as a Strong Participant

Bittime - Tether (USDT), the most dominant stablecoin by market capitalization, received a constrained rating in the latest stability assessment from rating agency S&P Global Ratings.  

This news, reported by CCN on March 20, 2024, sparked debate about the transparency and support of this United States dollar-pegged crypto asset.

Tether's Dominance Tarnished by Lack of Transparency

Despite occupying the top spot in terms of market capitalization (around $103 billion at the time of writing), Tether has long been criticized for its lack of transparency regarding its reserves. S&P Global Ratings rated Tether's assets as meeting only "fair" and "weak" criteria in terms of information transparency of custodian entities, counterparties and bank account providers. 

Additionally, the assessment revealed Tether's significant exposure to high-risk assets, such as corporate bonds.

Despite receiving a lower ranking, Tether (USDT) still dominates the stablecoin market with a market cap of over $100 billion. Many crypto exchanges and decentralized finance ( DeFi ) platforms still rely on USDT as their primary stablecoin.

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USD Coin and Other Stablecoins Achieve Better Rankings

While Tether received a "Limited" rating, other stablecoins such as USD Coin (USDC) and Pax Dollar (USDP) managed to achieve a "Strong" rating from S&P Global Ratings. These two stablecoins have been praised for their greater transparency and backing of assets that are considered more conservative.

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Impact on the Stablecoin Market

This valuation could impact investors' perception of various stablecoins. Investors who value transparency and security of their assets may be more interested in better-rated stablecoins, such as USDC and USDP. This could potentially affect Tether's market share in the future.

A 'Limited' rating from S&P Global Ratings could negatively impact investor confidence in Tether. Investors may switch to other stablecoins that are considered more transparent and stable. However, Tether's established dominance in the crypto market may be difficult to unseat any time soon.

Conclusion

A “Limited” rating for Tether from S&P Global Ratings highlights the issue of transparency and asset backing in the world of stablecoins. Investors now have additional information to consider when selecting a stablecoin that suits their needs. Tether's dominance may be threatened if they do not improve the transparency and security of their assets.

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How to Buy Tether (USDT) on Bittime

You can buy and sell  Tether (USDT)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Tether (USDT)  is available on Bittime with  the USDT/IDR market pair . To be able to buy  USDT/IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn the complete guide on how to buy Tether (USDT) on Bittime . 

Monitor price chart movements  of Tether (USDT) , Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime. 

Also Read:

USDT vs USDC: Which is Better?

Tether (USDT) vs. First Digital USD (FDUSD): The Battle of the Stablecoins

Buy USDT: The Stablecoin That Reaches $100 Billion Market Cap

DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.