Categories: Crypto WORLD

S&P conducted an analysis of the stability and risks associated with stablecoins

According to a report from ratings agency S&P, the world's largest stablecoin, USDT, was assessed as limited in its ability to maintain a sustainable peg to fiat currency.

The organization launched the stablecoin stability assessment system, which is “designed to assess the ability of a stablecoin to maintain value relative to fiat currency.” The press release states that the company takes into account the following aspects in its research:

  • asset quality risks, including credit risks, market value risks and custody risks;
  • analysis of the extent to which any overcollateralization requirements and liquidation mechanisms can mitigate these risks.

In addition, experts take into account the regulatory framework, the repayment ability and liquidity of the asset, dependence on technology and third parties, and other factors.

The S&P stablecoin rating is calculated on a scale of 1 to 5, where 1 means the asset is “strong” and 5 means it is “weak.” In general, the organization analyzed such stablecoins as DAI, FDUSD, FRAX, GUSD, USDP, USDT, TUSD, USDC. USDC, USDP, GUSD received the best rating, and FRAX and TUSD received the worst rating.

It should be noted that earlier experts spoke about the state of the stablecoin sector in November.

legenda

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