S&P Downgrades Tether (USDT), HSBC Warns of Renewed Stablecoin De-Pegging Risks

Global banking giant HSBC has highlighted renewed concerns over stablecoin de-pegging risks following a recent assessment by S&P Global Ratings. The rating agency downgraded its stability score for Tether (USDT), the world's largest stablecoin, citing vulnerabilities in its custody and governance frameworks. HSBC analysts pointed out that this downgrade brings the critical issue of a potential loss of peg back into sharp focus for investors and the broader cryptocurrency market. The warning underscores ongoing scrutiny of stablecoin reserves and operational transparency. Market participants are advised to monitor the situation closely, as stability concerns surrounding major assets like USDT can have significant ripple effects across crypto liquidity and trading pairs.