HSBC has issued a warning about the potential de-pegging risk of stablecoins following S&P Global Ratings' downgrade of Tether's reserve assessment to 'weak'. The bank emphasized that stablecoin issuers must maintain highly liquid and low-risk reserves to prevent price deviations from their peg, especially if holders rush to redeem.
Tether's USDT, the largest stablecoin, is under increased scrutiny due to its reserve composition, which includes higher-risk assets. HSBC noted that this downgrade could have significant implications for exchanges, trading pairs, and DeFi infrastructure. The bank stressed the growing importance of regulatory focus on reserve quality, governance, and transparency for stablecoins to achieve mainstream adoption and institutional settlement.
HSBC Highlights De-pegging Risk After Tether Reserve Downgrade
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