S&P Global Ratings launches a new stablecoin stability assessment system, blending traditional and decentralised finance insights to evaluate stablecoins' capacity to maintain parity with fiat currencies.
The assessment ranks stablecoins on a scale from 1 (very strong) to 5 (weak), thoroughly examining asset quality risks, overcollateralisation, and liquidation mechanisms.
The initial assessment covers eight leading stablecoins, including DAI, FDUSD, FRAX, GUSD, USDP, USDT, TUSD, and USDC, providing an in-depth analysis of their stability.
In the ratings, USDC and USDP top the list with a score of 2, while TUSD and FRAX are rated 5, categorised as "weak"; DAI, FDUSD, and USDT receive a 4, indicating a "constrained" status in the evaluation.