Bitcoin Updates Today: Tether’s Bitcoin Investment Compared to Stability: S&P Raises Concerns Over Unstable Peg

Bitget App

Trade smarter

Bitget

News

Markets

Bitcoin Updates Today: Tether’s Bitcoin Investment Compared to Stability: S&P Raises Concerns Over Unstable Peg

Bitget-RWA2025/11/27 06:50

By:Bitget-RWA

- S&P Global Ratings downgraded Tether's USDT to "weak" due to 5.6% Bitcoin exposure exceeding its 3.9% overcollateralization threshold and limited reserve transparency. - Tether CEO defended the model, citing no redemption refusals and $10B 2025 net profit, while S&P warned Bitcoin/gold price drops could trigger undercollateralization risks. - Market turbulence saw $3.5B Bitcoin ETF outflows and $9.9B Bitcoin holdings, with Tether expanding into gold producers and crypto lending despite regulatory scrutin

S&P Global Ratings has assigned Tether's

USDT

stablecoin its lowest stability rating, labeling it as "weak" due to increasing concerns about the company’s investments in riskier assets such as

Bitcoin

. According to a report released on November 26,

S&P’s downgrade follows changes in Tether’s reserve makeup

, with Bitcoin now making up 5.6% of all USDT—surpassing the agency’s 3.9% overcollateralization guideline. Alongside ongoing questions about reserve transparency and exposure to gold, secured loans, and corporate bonds,

these factors have intensified doubts about USDT’s ability to consistently hold its $1 value

S&P warned that a drop in Bitcoin or other volatile assets could weaken Tether’s reserves, possibly resulting in insufficient collateral for USDT. Even though Tether holds a significant amount of U.S. Treasuries,

the agency pointed out "ongoing disclosure shortfalls" and a lack of clear asset separation

to safeguard against insolvency.

Tether

, on the other hand, has stood by its approach, with CEO Paolo Ardoino

characterizing the downgrade as a reaction from "traditional finance"

against new financial innovations. He stressed that Tether has always honored redemption requests and described the company as "the first overcapitalized entity in financial history".

Tether’s allocation to Bitcoin has increased during recent market volatility. Bitcoin itself has fallen about 30% from its 2025 peak, and

U.S. spot ETFs have experienced $3.5 billion in withdrawals

this November, adding to the downward trend. Tether’s reserves also feature $12.9 billion in gold and $9.9 billion in Bitcoin, with

Jefferies observing that Tether’s gold reserves are comparable to those of some central banks

such as South Korea and Hungary. The company has also branched out into gold mining and crypto-backed lending, including

a $25 million stake in Figure’s YLDS stablecoin

Tether’s financial position remains strong, reporting

$10 billion in net earnings

for the first three quarters of 2025, fueled by USDT’s $184 billion market value. Still, the downgrade highlights the increasing scrutiny stablecoins face as regulations lag behind. S&P indicated that Tether could earn a higher rating by reducing its exposure to risky assets and improving transparency—though such steps may conflict with its current strategy involving Bitcoin and gold.

At the same time, Tether’s reach goes beyond its stablecoin.

Its recent purchase of 1 million Rumble shares

, worth $5.75 million, has boosted the video platform’s stock by 14%. Tether’s involvement in crypto tipping and GPU acquisitions further demonstrates its growing ecosystem. Nevertheless, as S&P’s caution suggests, the tension between fostering innovation and ensuring stability remains delicate in a sector where trust can quickly disappear.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Bolivia legalizes stablecoin integration into banking , allowing crypto-based accounts and loans to combat inflation and currency devaluation. - Crypto transaction volumes surged 530% in 2025, driven by $15B in stablecoin use as businesses adopt USDT for cross-border payments. - Policy mirrors regional trends, with stablecoins recognized as legal tender to stabilize the boliviano amid 22% annual inflation and dollar shortages. - Challenges include AML safeguards, tax frameworks, and public trust, as regu

Bitget-RWA•2025/11/27 07:38

Bolivia Turns to Stablecoins to Address Inflation and Currency Instability

Bitcoin Updates: Bitcoin's Decline Sparks Altcoin Battle: ADA's $0.43 Support Faces Pressure

- ADA holds $0.43 support as Bitcoin’s seven-month low of $80,000 pressures altcoin market volatility. - Altcoin fragility stems from Fed’s high-rate signals, reduced institutional inflows, and technical breakdowns in key resistance levels. - Bitcoin’s $90,000 support breach triggered cascading liquidations, while ADA’s $0.43 level shows increased on-chain accumulation. - Infrastructure innovations like GeekStake’s staking protocol aim to stabilize networks during volatility without price forecasts. - Mark

Bitget-RWA•2025/11/27 07:38

Bitcoin Updates: Bitcoin's Decline Sparks Altcoin Battle: ADA's $0.43 Support Faces Pressure

Bolivia’s Digital Currency Bet: Navigating Volatility with Stable Solutions

- Bolivia's government permits banks to custody cryptocurrencies and offer crypto-based services, reversing a 2020 ban to combat inflation and dollar shortages. - Stablecoin transactions surged 530% in 2025, with $14.8B processed as Bolivians use USDT to hedge against boliviano depreciation (22% annual inflation). - State-owned YPFB and automakers like Toyota now accept crypto payments, while Banco Bisa launches stablecoin custody to expand financial inclusion for unbanked populations. - The policy faces c

Bitget-RWA•2025/11/27 07:10

Bolivia’s Digital Currency Bet: Navigating Volatility with Stable Solutions

Switzerland's Postponement of Crypto Tax Highlights Worldwide Regulatory Stalemate

- Switzerland delays crypto tax data sharing until 2027 due to ongoing political negotiations over OECD CARF partner jurisdictions. - Revised rules require crypto providers to register and report client data by 2026, but cross-border data exchange remains inactive until 2027. - Global alignment challenges exclude major economies like the U.S., China, and Saudi Arabia from initial data-sharing agreements. - Domestic legal framework passed in 2025, but partner jurisdiction negotiations delay implementation u

Bitget-RWA•2025/11/27 07:10