Tether buying Bitcoin drags down USDT rating? S&P issues its weakest rating of 5 for the first time: the rising proportion of risk assets exacerbates depeg risk.

On November 26, international credit rating giant S&P Global Ratings released its latest report, officially downgrading the stability rating of the world's largest stablecoin issuer Tether's USDT from the original “4” (restricted) to “5”, the weakest level on the agency's stablecoin rating scale. (Background: Tether announced an investment in the digital asset infrastructure platform Parfin to accelerate the adoption of USDT in Latin America) (Supplementary background: Tether invests in the Bitcoin collateral loan platform Ledn: the era of borrowing with holdings has arrived, with a market size projected to reach $60 billion by 2033) On November 26, international credit rating giant S&P Global Ratings (S&P Global Ratings) released its latest report, officially downgrading the stability rating of the world's largest stablecoin issuer Tether's USDT from the original “4” (restricted) to “5”, the weakest level on the agency's stablecoin rating scale. It is understood that this rating specifically measures the ability of stablecoins to maintain a 1:1 peg to the US dollar, with 1 representing “very strong” and 5 representing “weakest.” The primary reason for the downgrade: the surge in high-risk asset proportion, insufficient buffer S&P pointed out that the two core issues leading to this downgrade are: 1. Tether's Bitcoin holdings have exceeded safe buffer levels: Currently, Bitcoin held by Tether accounts for 5.6% of USDT's circulating supply, higher than the 3.9% shown in Tether's third-quarter verification report. If Bitcoin prices suffer a severe setback, USDT's reserve assets may face the risk of falling below full collateralization. 2. Insufficient transparency: S&P noted that besides Tether's high-risk asset proportion rising sharply from 17% a year ago to 24% (including Bitcoin, gold, secured loans, corporate bonds, etc.), the publicly disclosed information is extremely limited, and Tether's custodians, counterparties, and banking credit quality have long been opaque. S&P emphasized that even though USDT still has most of its reserves in cash-like assets such as short-term U.S. Treasury bonds, the overall structure still lacks the basic protections that a regulated market should have, such as strict separation of assets from the company's own funds and the ability for investors to redeem directly at any time. Further reading: Tether buys nearly $100 million in Bitcoin, accumulating holdings of 87,296 BTC, firmly holding the position of the sixth-largest holder. USDT's market capitalization exceeds $180 billion. Since its inception, USDT has been the largest circulating dollar stablecoin globally, with its market capitalization now exceeding $180 billion, primarily used for cryptocurrency trading and cross-border payments. However, Tether has long faced criticism for insufficient reserve transparency, and in 2021, it reached a settlement with the New York Attorney General, paying a $18.5 million fine and promising to improve its information disclosure methods. S&P's “Stablecoin Stability Assessment” was officially launched in 2023, assessing aspects including asset quality, regulatory framework, liquidity, redemption mechanisms, and technological risks. USDT was first rated “4” at the end of 2023 and has now dropped to the weakest “5” for the first time. However, S&P also added that if Tether can significantly reduce the proportion of high-risk assets in the future and provide more complete and verifiable information on its reserve composition and partner banks, there is still room for an upgrade in the rating. Related reports: Tether holds a massive amount of U.S. Treasury bonds! Its debt scale soars to $135 billion, surpassing South Korea, ranking 17th globally. Tether: The stablecoin USAT is expected to launch in the U.S. in December, with its first wave on the short video platform Rumble. Tether is akin to a money printing machine! Net profit for the first three quarters of 2025 exceeds $10 billion, holding $135 billion in U.S. Treasury bonds, ranking 17th globally. <Tether's purchase of Bitcoin drags down USDT's rating? S&P issues its weakest rating of 5 for the first time: rising proportion of risk assets exacerbates depegging risk> This article was originally published in BlockTempo, the most influential blockchain news media.