Stablecoin

Gemini

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The study of the cryptocurrency market continues to be taken up with each passing day. Accordingly, S&amp;P Global drew attention by launching a stablecoin stability assessment. In the initial rating of eight stablecoin projects, none received the highest grade, but two projects received the lowest score in the assessment of their abilities to maintain their fiat pegs.
<h2 style="text-align: justify" id="sp-s-stablecoin-report">S&amp;P’s Stablecoin Report</h2>
According to the company’s statement, S&amp;P Global creates these ratings by first examining the quality of asset risks, then factors that mitigate risks, and finally considering governance, legal and regulatory framework, redeemability and liquidity, <a href="https://newslinker.co/category/technology/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">technology</a>, third-party dependencies, and past performance.
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-288246 size-full" src="https://coin-turk.com/wp-content/uploads/2023/12/sp-stablecoin-degerlendirmesi.webp" alt="" width="1170" height="562">
Formerly known as Standard &amp; Poor’s, S&amp;P Global is most recognized for the S&amp;P 500 Index, which lists major companies in the United States stock exchanges. The company had previously turned its attention to the stablecoin sector, but not with the depth of the new ratings. S&amp;P Global Ratings senior analyst Lapo Guadagnuolo stated the following on the matter:
<blockquote>
 “We see stablecoins playing a significant bridge role between crypto and real-world assets, further integrating into the fabric of financial markets. However, it is crucial to acknowledge that stablecoins are not immune to factors such as asset quality, governance, and liquidity.”
</blockquote>
<h2 style="text-align: justify" id="noteworthy-details-from-the-report">Noteworthy Details from the Report</h2>
Gemini (GUSD), Pax (USDP), and USD Coin, thanks to the quality of their asset backings, managed to receive the highest score of 2 points, securing a strong rating. Gemini and Pax stand out with their regulation by the New York State Department of Financial Services.
<a href="https://en.coin-turk.com/bitcoins-strong-performance-continues-despite-recent-dip/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Tether</a>, the clear market value leader among stablecoins, was rated as limited with 4 points. The assessment was largely based on the lack of transparency of the project’s assets. TrueUSD’s weak rating with 5 points was also based on a lack of information.
FRAX was rated weak with 5 points, as it continues to rely on an algorithm despite the community decision in March to switch to USD backing. Moody’s rating service moved to stablecoin analysis with the <a href="https://en.coin-turk.com/veteran-investor-jim-rogers-warns-of-imminent-massive-global-economic-crisis/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Crypto</a> Asset Monitor service based on artificial intelligence in November.
<img loading="lazy" decoding="async" loading="lazy" class="aligncenter wp-image-288247 size-full" src="https://coin-turk.com/wp-content/uploads/2023/12/novacula-occami-tweet.png" alt="" width="1093" height="884"> Continue Reading: <a href="https://en.coin-turk.com/stablecoin-stability-a-critical-evaluation-by-sp-global/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/stablecoin-stability-a-critical-evaluation-by-sp-global/</a>

Stablecoin Stability: A Critical Evaluation by S&P Global

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