The post S&P Global Hits Tether With Weak Stability Rating Over Bitcoin Reserve Concerns appeared on BitcoinEthereumNews.com.

TLDR: S&P cut Tether to lowest stability tier over 24% risk asset exposure including 5.6% in Bitcoin holdings Rating agency cited transparency gaps around custodians and lack of segregated reserve structure CEO Paolo Ardoino rejected downgrade as broken legacy finance propaganda against alternative models USDT maintains dollar peg and trading volumes despite increased scrutiny from traditional institutions S&P Global has slashed Tether’s stability rating to its weakest tier. The downgrade centers on mounting reserve risks and persistent transparency issues.  The ratings agency flagged several red flags in its assessment. Tether now faces increased scrutiny over its ability to maintain the dollar peg during severe market stress. Reserve Risk Climbs as Bitcoin Holdings Grow The stablecoin issuer’s exposure to volatile assets has jumped sharply in recent months. Risk assets now account for 24% of Tether’s reserves, up from 17% previously.  Bitcoin alone represents roughly 5.6% of total backing. The portfolio also includes gold, corporate bonds, and loans. S&P JUST HIT TETHER WITH A “WEAK” RATING S&P Global downgraded Tether’s stability score to its lowest tier, citing rising reserve risk and limited transparency. Their key factors behind the cut: $USDT’s exposure to “risk assets” like $BTC, gold, corporate bonds, and loans… pic.twitter.com/Ra2Xq4JKPm — CryptosRus (@CryptosR_Us) November 28, 2025 S&P expressed concern about these holdings during market turbulence.  The ratings firm believes concentrated risk could threaten peg stability. Traditional stablecoins typically hold safer assets like Treasury bills. Tether’s approach marks a departure from that conservative model. The company lacks a fully segregated reserve structure according to the report.  Details about custodians remain unclear to outside observers. Information on underlying counterparties is similarly limited. These gaps make independent verification difficult for traders and institutions. Market participants now have fresh data to weigh in their risk assessments. The downgrade does not signal immediate danger. It…

---

Filed under: News - @ November 28, 2025 1:26 pm