TechFlow news, S&P Global Ratings released its ninth stablecoin stability assessment, this time focusing on Mountain Protocol's yield-bearing stablecoin USDM.
The evaluation assessed the stablecoin's ability to maintain its peg, with USDM receiving a score of 3, indicating "adequate" performance according to the firm's criteria.
Other stablecoins previously assessed include USDC (2, strong), Tether (4, constrained), and DAI (4, constrained).
S&P Global Ratings evaluates multiple aspects of stablecoins, including credit risk, market risk, custody risk, reserve funding, robustness of liquidation mechanisms, and availability of overcollateralization. Additional factors considered include governance, regulatory framework, and reliance on third parties. The firm then scores these criteria on a scale from 1 ("very strong") to 5 ("weak").
