The producer of the S&P 500 assessed eight stablecoins. Tether received the second-lowest rating.
S&P Global has launched a stablecoin stability assessment. In its initial ratings of the eight stablecoins, none were given the top mark, but two received the lowest, based on their ability to maintain their fiat pegs.
According to a statement, to establish its ratings, S&P Global first examines asset quality risks, then factors mitigating the risks, and then considers governance, legal and regulatory framework, redeemability and liquidity, technology and third-party dependencies, and track record.
S&P Global, formerly known as Standard & Poor’s, is best known for the S&P 500 Index of large companies listed on United States stock exchanges. It has turned its attention to stablecoin before, but not with the depth of the new ratings. S&P Global Ratings senior analyst Lapo Guadagnuolo said:
