S&P Rates Tether Second Lowest in Stablecoin Stability Analysis

• S&P Global Begins Stability Evaluation of Stablecoins
• Stability Scores Assigned to Various Stablecoins
• What are Stablecoins?
• Tether's Performance and Existing Concerns

S&P Global Begins Stability Evaluation of Stablecoins

Stability Scores Assigned to Various Stablecoins

What are Stablecoins?

Tether's Performance and Existing Concerns

Tether (USDT) is the third-largest cryptocurrency following bitcoin (BTC) and ether (ETH), boasting a market capitalization surpassing $90 billion, as per CoinGecko data. Last November, amidst uncertainty over the operational viability of crypto exchange FTX$3.28 -5.38%, Tether fell 3% below its peg, citing market volatility.

Feedback from participants in both decentralized finance (DeFi) and traditional finance (TradFi) indicated a lack of transparency and insight into the inherent risks associated with different stablecoins.

Tether had not responded to a request for comment at the time of writing.

Edited by Jonathan Stoker