S&P Global Ratings assesses the ability of Tether (USDT) to maintain its peg to the U.S. dollar at 4 (constrained). Our asset assessment of 4 reflects a lack of information on entities that are custodians, counterparties, or bank account providers of USDT's reserves. This is notwithstanding that a large share of USDT’s reserves comprise short-term U.S. treasury bills and other U.S. dollar cash equivalents. There is also significant exposure to higher-risk assets with limited disclosure. Such assets could be subject to credit, market, interest rate, or foreign currency risks. We have not adjusted after the asset assessment since weaknesses we have observed are in line with a stablecoin stability assessment of '4'. These weaknesses include limited transparency on reserve management and risk appetite, lack of a regulatory framework, no asset segregation to protect against the issuer's insolvency, and limitations to USDT's primary redeemability.