S&P Global Ratings Unveils New Stablecoin Stability Assessment

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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:

StablecoinS&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.

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