S&P Global Ratings Gives USDM Stablecoin Adequate Rating

According to PANews, S&P Global Ratings has released its ninth stablecoin stability assessment report, focusing on Mountain Protocol's stablecoin USDM. The assessment evaluates the stablecoin's ability to maintain its peg, with USDM receiving a rating of 3, achieving an 'adequate' rating. S&P Global Ratings assesses various aspects of stablecoins, including credit risk, market risk, custody risk, reserve funds, robustness of clearing mechanisms, and available over-collateralization. Other factors, such as governance, regulatory framework, and third-party dependencies, are also considered. The company then assigns scores to these criteria, with 1 representing 'very strong' and 5 representing 'weak'. Previously assessed stablecoins include USDC with a score of 2 (strong), Tether with a score of 4 (limited), and DAI with a score of 4 (limited).