S&P Global Rates Tether "Weak" Among Stablecoins
S&P Global Ratings assigned "weak" stability scores to Tether, TrueUSD, and Ethena USD in its latest stablecoin assessments. Six of 11 evaluated stablecoins earned "adequate" or "strong" ratings, offering clearer risk insights.
Stablecoin Ratings Reveal Varied Strengths
Tether (USDT), TrueUSD (TUSD), and Ethena USD (USDe) received "weak" ratings, scoring 5, from S&P Global Ratings. This places them at the bottom of the agency's Stablecoin Stability Assessments (SSAs). Conversely, six of the eleven stablecoins assessed achieved "adequate" or "stronger" ratings. Euro Coin (EURC), USD Coin (USDC), Global Dollar (USDG), and Paxos USD (USDP) secured "strong" scores of 2. Gemini USD (GUSD) and EUR Convertible (EURCV) were rated "adequate" with a score of 3. First Digital USD (FDUSD) and Sky Dollar/Dai Stablecoin (USDS/DAI) received "constrained" ratings, scoring 4. S&P Global Ratings launched its SSAs in December 2023 to improve transparency around stablecoin risks.
Assessment Criteria and Recent Downgrades
S&P's assessments analyse backing asset strength, including credit, market, and custody risks. They also consider overcollateralisation, liquidation mechanisms, and reserve funds. Governance, regulation, redeemability, liquidity, technology, third-party dependencies, and issuer track record also factor into the analysis. Tether's rating was downgraded from a score of 4 in November 2025. Gemini USD also saw a downgrade, moving from a score of 2 to 3 in December 2025. The remaining nine stablecoin assessments have remained unchanged for the past three quarters. Mohamed Damak, Digital Assets Analyst at S&P Global Ratings, stated SSAs reflect a stablecoin's ability to maintain its peg to a fiat currency or basket. He noted over half of current assessments are "adequate" or better, showing stronger asset quality and risk management among some issuers. However, significant differences across stablecoins persist, which can elevate de-pegging risks.
These ratings offer institutional investors and digital asset firms a clearer view of stablecoin stability. For Asian investors, this transparency helps in evaluating counterparty risk within digital asset portfolios. The varying scores highlight the importance of due diligence on stablecoin reserves and operational integrity. S&P Global Ratings has also broadened its digital asset coverage. This includes tokenised treasury funds and digital bonds. In February 2026, the agency assigned its first rating to a structured finance transaction backed by bitcoin. This expansion demonstrates growing institutional interest and the need for standardised risk assessments in the wider digital asset market.
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