Tether, TrueUSD and Ethena USD sit at the bottom of S&P Global Ratings’ stablecoin assessments with weak scores.
Six of the 11 stablecoins covered by the ratings agency are rated adequate or stronger for maintaining a peg to a fiat currency or basket of currencies.
Euro Coin (EURC), USD Coin (USDC), Global Dollar (USDG) and Paxos USD (USDP) were rated 2, or strong, while Gemini USD (GUSD) and EUR Convertible (EURCV) received a score of 3, or adequate.
First Digital USD (FDUSD) and Sky Dollar/Dai Stablecoin (USDS/DAI) were rated 4, or constrained.
Tether (USDT), TrueUSD (TUSD) and Ethena USD (USDe) received the lowest score of 5.
Tether was downgraded from 4 in November 2025, while Gemini USD moved from 2 to 3 in December. The other nine assessments remained unchanged over the past three quarters.
S&P Global Ratings launched its Stablecoin Stability Assessments (SSAs) in December 2023 to provide greater transparency around stablecoin risks.
The assessments consider the strength of backing assets, including credit, market and custody risks, as well as overcollateralisation, liquidation mechanisms and reserve funds.
They also factor in governance, regulation, redeemability, liquidity, technology, third-party dependencies and the issuer’s track record.
Mohamed Damak, Digital Assets Analyst at S&P Global Ratings, said,
“SSAs reflect our view of a stablecoin’s ability to maintain its peg to a fiat currency or a basket of currencies. Stablecoins can face risks that lead to de-pegging.
With over half of our assessments now at adequate or above, we are seeing stronger asset quality and good risk management practices among some issuers. However, significant differences remain across stablecoins which can increase the risk of de-pegging.”
S&P Global Ratings has also expanded its digital asset coverage to tokenised treasury funds and digital bonds, and in February 2026 assigned its first rating to a structured finance transaction backed by bitcoin.
Featured image: Edited by Fintech News Singapore, based on image by Frolopiaton Palm via Magnific
