So, the big credit rating agency S&P has claimed that Bitcoin is turning into some sort of global collateral.
But let’s be real here. Saying they ‘declare’ it might give the wrong impression, like they’re officially backing it. So I adjusted how I put it in the title for clarity.
Now, is this claim solid? Not entirely. S&P and their analysts haven’t actually made a formal statement saying, ‘Bitcoin is now global collateral.’ However, they’ve pointed out a trend: Bitcoin is definitely being used more as collateral in lending and credit setups. Plus, S&P has been stepping up its involvement in the Bitcoin space, like their first-ever Bitcoin-linked corporate rating, which shows that institutions are taking notice.
What’s the scoop? The S&P analysts have brought up the growing use of Bitcoin as collateral in interviews. They have talked about how its volatility has been decreasing and that it's gaining traction as collateral.
S&P is diving into Bitcoin-related credit stuff directly. Back in late 2025, they rolled out a corporate credit rating for a company that links its borrowing to Bitcoin, which people are saying is a big deal for institutional credit markets. So, it shows that they’re getting more into it, but it doesn’t mean Bitcoin is legally recognized as collateral yet.
Whether S&P officially "declared" it or not, the trend is clear - Bitcoin and crypto assets are being recognized as legitimate financial instruments. But what excites me more than the collateral narrative is the practical spending side.
Right now, the biggest friction point isn't whether crypto is valuable as collateral - it's whether people can actually USE it in daily life. In Southeast Asia, particularly Thailand, we're seeing a fascinating convergence:
- The Thai government launched TouristDigiPay, a pilot for tourists to convert crypto to THB
- PromptPay QR payments are used by 76 million people daily
- Licensed exchanges like Bitkub are making crypto-to-fiat bridges easier
Stablecoin-to-local-fiat conversion via local payment rails (like PromptPay in Thailand, Pix in Brazil, UPI in India) is becoming the real-world bridge between "crypto as collateral" and "crypto as money."
The countries with existing instant payment infrastructure are where crypto adoption will move fastest - and Thailand is leading that charge in Southeast Asia.
I also noticed that a project I followed in the past moves quite fast in Thailand. I remember they said it was because the government is quite open to crypto, so they can network faster compared to other countries. Most of them still don't bear fruits though, because nearly all of their contacts are about long-term partnerships, unlike this payment processing system.
I don't think my government will follow in that direction though, since there's no pressure to facilitate people to trade Bitcoin/crypto to fiat quickly here. That being said, some networking hub for crypto business do show up every now and then (which is far from "global collateral").
Please don't make that happen and this saying with me is a clickbait for making noise.
Let Bitcoin is simply itself, Bitcoin, and an individual collateral, a company collateral, a national collateral or global collateral, it's how the community at small or wide scale accepts and uses Bitcoin. The world is truly huge and Bitcoin can not fix all issues nationally or globally as it is responsibility of governments at wide scale. When more people, companies, institutional investors, governments try to join the Bitcoin party, Bitcoin will get benefit from such rising adoption as its value will soar more with more utilities, better adoption, bigger demand while future supply declines every Bitcoin halving.
I can't wait for the day that you have your average person walking around transacting with bitocin for their groceries and whaever else they need on a casual day. Then again, if that were to be true it would almost have to mean that bitcoin would take the place of cash and we wouldn't be trading paper left and right but transnacting with Sats and through our telephones or whatever new means of future technology is out that allows for bitcoin transfers.
Cash as in paper money is already dwindling in popularity. Everybody uses digital payment these days and bitcoin could dominate that. We are transitioning to digital society, carrying cash is just too much hassle for no reason.
At that point, people will either use an e-wallet and digital banks or simply choose the more decentralized and private alternative such as bitcoin.
Were not particularly early to Bitcoin as retail investors but its definitely still early as an institutional play. We iust need to be patient because although huge gains didnt really come in the last bull market, its only a matter of time until they do, HODL.
Institutional investors are big players in the market and they don't join this market for small profit especially with capital gain tax, they will try to play games that bring big profit so that they can have good profit left after paying unavoidable capital gain tax.
Institutional investors are late comers in this market but we don't suffer anything from their late participation, and if we already had bitcoin, we can take advantage of better entry prices as earlier comers in the market and wait for institutional investors and their games work for us. They bring huge investment capital, demand into this market and in long term, the market with higher demand will rise in price.
If we can hold our bitcoin thoroughly some market test, bear markets, we will have good profit while don't have to set up any games like institutional investors. If we are intelligent retail investors, we can let institutional investors do their jobs while likely indirectly work for us.
That's simply an overstatement. Is Bitcoin used as collateral? Yes. It is even starting to be used in some cases for mortgages. Is the trend growing? Yes. But anyone involved in this knows that its use is minuscule compared to other forms of collateral. The trend will surely continue to grow over time, but it still has a long way to go before it becomes globally significant.
If S&P could be in support of Bitcoin and see the future prospects for potential investors, then I don't see why anyone of Us cannot take a decision on our own to invest on Bitcoin, because the financial future of the world economy is running towards the direction of Bitcoin investment and those that seek in the opportunity and come in early we have to be the first to benefit from most of the advantage, just as we see that we have some investors that have invested earlier than now and are in profits, ours can also be the same if we take decision today and secure the future tomorrow.
Bitcoin has fulfilled the requirement to be a commodity. It's nothing new to see it being used as a new home equity line of credit. It's value and resellable. So it makes sense to see people starting to used it as collateral to borrow some money. Even mine sometimes collateralized my btc on cex to borrow some stables.
However, it's not yet being used globally. It's only limited for people who used crypto. It's yet becoming a global collateral.