Fitch downgrades French debt rating

Fitch downgrades French debt rating

Rating agency Fitch has lowered France’s credit rating from AA- to A+, a strong signal that shifts the country’s debt from a high-quality category to simply “upper medium grade.” This decision reflects growing concerns about the sustainability of French public finances, as debt now exceeds 113% of GDP.

Fitch specifically highlights political instability as a key factor. Recent institutional deadlocks and the lack of a clear majority complicate the implementation of fiscal reforms, making the deficit reduction path uncertain. The agency sees it as unlikely that France will return below the 3% of GDP threshold before 2029, with the current deficit hovering around 5.5% to 6%.

This downgrade could directly impact the cost of state financing. By demanding a higher risk premium, investors may raise the interest rates required to lend to France, further increasing debt burdens and creating a tighter financial cycle.

Some international funds, bound by strict credit quality criteria, could also reduce their exposure to French bonds, adding more pressure to markets. The government will therefore need to quickly convince investors of its ability to control public finances.

While authorities emphasize the structural strength of the French economy, Fitch’s decision serves as a reminder: without fiscal reforms and political stability, France risks seeing its financial credibility deteriorate on the international stage.

Strategy/MSTR rejected from s&p 500

Strategy (formerly MicroStrategy), well known for massively accumulating Bitcoin, had strong arguments for inclusion in the S&P 500 index: large market cap, high trading volumes, and solid profits in recent reports. Yet in the September rebalancing, the index committee did not include its MSTR stock. According to JPMorgan, this may signal that the “crypto treasury” model is reaching its limits.

JPMorgan highlights “investor fatigue” with companies placing Bitcoin on their balance sheets. MSTR’s share price, after soaring in recent years, has already seen a sharp correction from its peak, reflecting growing distrust tied to operational uncertainties such as debt management, financing costs, and direct exposure to Bitcoin’s volatility.

Rejection from the S&P could trigger ripple effects: other index providers may review the presence of Strategy and similar companies in their benchmarks. If such exclusions multiply, it would further limit access to funding, equity, and visibility for these firms.

Despite this setback, Strategy continues to add Bitcoin to its reserves, strengthening its position among top corporate holders. But for JPMorgan, the challenge is no longer just about accumulating crypto—it is about proving the ability to generate stable, diversified revenues and to run credible financial governance.

Kraken brings tokenized stocks to Europeans

Kraken is rolling out its xStocks solution for the European market, allowing EU users to trade tokenized versions of U.S. stocks and ETFs on its platform. The offer includes more than sixty securities originally available in over 100 countries, reinforcing the mission of making traditional markets more accessible.

These tokenized stocks do not provide traditional shareholder rights such as voting, but they allow investors to benefit from the price movements of the underlying assets. A key advantage is the ability to withdraw tokens to a non-custodial wallet, giving users greater control.

The launch includes trading availability 24 hours a day, five days a week, unlike traditional stock market hours. Kraken also offers extended trading sessions for these tokenized assets, increasing flexibility for investors outside typical time zones.

This initiative comes shortly after Kraken obtained its MiCA license from the Central Bank of Ireland, enabling it to legally provide crypto services throughout the European Union. xStocks stands as one of the first legal tokenized offerings in Europe under this framework.

Kraken is raising the bar against competitors such as Robinhood and other fintechs that already offer similar services. The European launch could intensify the race among platforms offering tokenized assets.

Tether announces usat

Tether is preparing to launch a stablecoin called USAT, specifically designed for the U.S. market. The token will comply with the recently passed Genius Act, which imposes strict requirements: reserves fully backed by liquid assets (notably Treasuries), regular audits, and enhanced transparency.

Bo Hines, former White House crypto adviser, has been appointed to lead Tether’s new U.S. division. USAT will be issued through Anchorage Digital, a regulated U.S. issuing bank, and its reserves will be managed by Cantor Fitzgerald. Deployment is expected by year-end.

Meanwhile, Tether’s existing stablecoin USDT will remain a “foreign” asset but will also need to align its model with the Genius Act’s requirements to retain its place in the U.S. legal ecosystem.

With USAT, Tether aims to strengthen its U.S. presence, not only to regularize operations but also to capture part of the high domestic transaction volumes. The context is favorable: regulation is evolving more clearly for stablecoins, offering a strategic window of opportunity.