S&P Issues First Stablecoin Stability Ratings, Bringing Mainstream Validation Despite Flaws
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S&P Global Ratings issued its first report assessing the stability of major stablecoins like Tether's USDT. This brings validation even though USDT received a low score.
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Stablecoins like USDC, Gemini Dollar, and Pax Dollar scored higher in S&P's 1-5 rating system, indicating they are more likely to maintain their dollar peg.
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The report provides useful independent analysis of stablecoins, though some in crypto question how much authority S&P has on this topic.
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S&P says the ratings are not endorsements or condemnations, just opinions on the likelihood stablecoins will hold their pegs.
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Crypto depends on acceptance from traditional institutions like S&P. So this report, even with flaws, brings some validation.