S&P Calls Tether 'Weak' ? Meanwhile It's Buying More Gold Than Central Banks

Tether (CRYPTO: USDT) just got slapped with the lowest possible stability score from S&P Global ? and in the same breath, it's quietly buying more gold than sovereign nations. Only in crypto does the market's bedrock stablecoin get labeled structurally fragile the very week it starts stockpiling bullion like a central bank preparing for a monetary overhaul.

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S&P Sounds The Alarm

In its Nov. 26 assessment, S&P moved USDT from 4 (constrained) to 5 (weak), warning that Tether's reserve composition has shifted meaningfully toward riskier components including Bitcoin, Gold, Secured loans and Corporate credit. The report notes Bitcoin now accounts for about 5.6% of USDT in circulation, exceeding the 3.9% overcollateralization margin ? meaning a sharp price drawdown could leave USDT under-backed.

S&P also cited additional structural weaknesses: limited disclosure, no asset segregation to protect holders in an insolvency scenario, a lack of regulatory guardrails and constraints around primary redemption. In Wall Street language, that's a flashing-red dashboard. In crypto? It's Thursday.

Read Also: Schiff Vs. Saylor: Is Strategy’s Bitcoin Hoard A Golden Illusion?

The Plot Twist: Tether Is Buying Gold Like A Nation-State

While S&P is questioning the stability of USDT, Financial Times reporting shows Tether purchased 26 tonnes of gold last quarter ? more than Kazakhstan (18t), Brazil (15t), Turkey (7t) and Iraq (6t). With an estimated 116 tonnes now under its control, Tether has become the world's largest independent holder of physical gold, on par with the national reserves of South Korea and Hungary.

For investors watching de-dollarization trends and the shift toward commodity-and-crypto-anchored finance, the move looks anything but accidental: Tether appears to be hedging against a new monetary era where Bitcoin and gold sit beside reserve currencies ? not below them.

Investor takeaway

Two opposing narratives are crashing into each other:

One says Tether is opaque, risky and vulnerable.

The other says Tether is positioning to survive a regime shift most haven't even priced in.

Either S&P is right ? and the foundation is cracking ? or Tether is preparing early for a world that's about to change.

And if crypto history is any hint, the truth usually lands somewhere profitable in the contradiction.

Read Next:

• Tether Just Did What Bitcoin Never Could ? Become The World’s Shadow Central Bank