TechFlow news — Credit rating agency S&P Global has begun assessing risks of eight major stablecoins worldwide. Tether's USDT and MakerDAO's DAI received only a 4 (Constrained), the second lowest score, while Circle's USDC earned a 2 (Strong), the second highest rating.
S&P's methodology for evaluating stablecoins places primary emphasis on asset quality risk, including credit, market value, and custody risks, followed by further analysis of over-collateralization requirements and liquidation mechanisms. Scores range from 1 to 5 (Strong to Weak). After asset evaluation, S&P adjusts the score by analyzing five additional areas before arriving at a final 1-to-5 rating for each stablecoin.
USDC, GUSD, and USDP received a 2 (Strong) rating; USDT, DAI, and FDUSD received a 4 (Constrained) rating; FRAX and TUSD received a 5 (Weak) rating. No stablecoin currently holds a 1 (Extremely Strong) rating.
