✨ USDT Loses Its Edge in the Stablecoin Battle
posted 13 Dec 2023
S&P Global has launched
a stablecoin stability assessment. This system considers several
factors including the underlying technology, governance, legal and
regulatory framework, liquidity, and third-party dependencies among
others.
In this assessment, USDC (USD Coin), GUSD (Gemini), and USDP (Pax
Dollar) scored well (but not perfectly) largely due to the quality of
their asset backing.
Notably, USDT was rated 4 (with higher scores indicating lesser
stability), primarily because of issues related to the transparency of
its backing assets. Frax and TrueUSD landed at the lower end of the
scale, with Frax being marked down for its algorithmic approach and
TrueUSD for a lack of transparency.
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