Which stablecoins were downgraded this week?

TLDR

Only Tether USDt (USDT) was downgraded this week. S&P Global cut its stablecoin stability rating to 5 (weak) from 4 (constrained) citing reserve risks and disclosure gaps per a Financial Times report.

1. Drivers: larger shares of higher?risk assets (Bitcoin, gold, loans) and limited transparency per Yahoo Finance.
2. No parallel downgrades for other major USD stablecoins were reported in reputable outlets this week.
3. Market impact: redemptions and peg held steady, with no meaningful outflows observed by Nansen per The Defiant.

Deep Dive

1. USDT Downgrade

S&P lowered USDTs ability to maintain its dollar peg to its lowest score, 5 (weak).

• S&P cited a rise in exposure to higher?risk reserves (Bitcoin, gold, secured loans, corporate bonds) and persistent gaps in disclosure per the Financial Times report.
• Coverage emphasized that Bitcoin now represents a non?trivial share of reserves, raising under?collateralization risk during sharp drawdowns per Yahoo Finance.

2. Other Stablecoins

Major outlets focused on USDT; no credible reports showed S&P downgrading other USD stablecoins (for example, USDC) this week.

• The FT and Yahoo coverage discussed USDT specifically, without parallel downgrade notices for other issuers per the FT report and Yahoo Finance article.

3. Immediate Market Effects

Despite the headline, on?chain and venue activity did not show acute stress.

• Nansen tracked no meaningful outflows and continued 1:1 redemption behavior, per The Defiants report.
• Reputable coverage framed the downgrade as a risk assessment of the reserve profile, not a depeg event, per Yahoo Finance.

Conclusion

This weeks downgrade centered on Tether USDt (USDT) and reflects concerns about reserve composition and transparency, not an observed peg break. No other major USD stablecoins were reported downgraded. Sensible actions include monitoring reserve mix and redemption flows and diversifying settlement options across issuers and venues.