USDT Loses Its Edge in the Stablecoin Battle

postedΒ  13 Dec 2023
Photo - USDT Loses Its Edge in the Stablecoin Battle
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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