S&P Global Ratings has today unveiled a new stablecoin stability assessment framework which evaluates stablecoins on a scale from 1 (very strong) to 5 (weak), considering asset quality risks, including credit, market, and custody risks. The framework also examines overcollateralisation requirements, liquidation mechanisms, governance, legal and regulatory frameworks, redeemability, liquidity, technology, third-party dependencies, and track record.
S&P Global Ratings has released public assessments for eight prominent stablecoins, including DAI, FDUSD, FRAX, GUSD, USDP, USDT, TUSD, and USDC:
| Stablecoin | S&P Global Ratings’ stablecoin stability assessment |
| Dai (DAI) | 4 (constrained) |
| First Digital USD (FDUSD) | 4 (constrained) |
| Frax (FRAX) | 5 (weak) |
| Gemini dollar (GUSD) | 2 (strong) |
| Pax Dollar (USDP) | 2 (strong) |
| Tether (USDT) | 4 (constrained) |
| TrueUSD (TUSD) | 5 (weak) |
| USD Coin (USDC) | 2 (strong) |
This stablecoin stability assessment by S&P Global Ratings marks a potentially crucial step in understanding and navigating the complexities of the stablecoin market, enhancing transparency and risk awareness in the digital asset ecosystem. For detailed information and individual assessments, visit S&P Global Ratings’s dedicated stablecoin stability assessment website.
