By Elizabeth Howcroft

PARIS (Reuters) -S&P Global has downgraded its rating of the world’s largest stablecoin, Tether, citing an increase in higher-risk assets in the cryptocurrency’s reserves and “persistent gaps in disclosure”, the ratings agency said on Wednesday.

S&P in 2023 created a new scale from 1 to 5, to assess the risk of various stablecoins – a type of cryptocurrency pegged to mainstream currencies, usually the U.S. dollar. In a research note S&P said it now rated Tether’s token, known as USDT, as “5 (weak)”, which is the lowest possible score, downgrading it from “4 (constrained)”.

A spokesperson for Tether did not immediately respond to a request for comment. Tether has previously said its token is the “leading digital dollar, combining stability, transparency, and global

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