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

S&P Global Ratings has assigned Tether's

stablecoin its lowest stability rating, labeling it as "weak" due to increasing concerns about the company’s investments in riskier assets such as . According to a report released on November 26, , 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, .

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,

to safeguard against insolvency. , on the other hand, has stood by its approach, with CEO Paolo Ardoino 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

this November, adding to the downward trend. Tether’s reserves also feature $12.9 billion in gold and $9.9 billion in Bitcoin, with such as South Korea and Hungary. The company has also branched out into gold mining and crypto-backed lending, including .

Tether’s financial position remains strong, reporting

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.

, 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.