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<a href="https://press.spglobal.com/2023-12-12-S-P-Global-Ratings-Launches-Stablecoin-Stability-Assessment" target="_blank" rel="noopener">S&amp;P Global Ratings</a> was the first major credit agency to formally grade stablecoin peg stability. It launched its Stablecoin Stability Assessment framework on December 12, 2023. USDC, Gemini USD, and Pax Dollar each earned a &quot;2 (Strong)&quot; score. Tether got a significantly lower mark. The framework&#x27;s back in the conversation. Stablecoin-related social posts are generating 45,241 interactions and 90% positive sentiment, according to LunarCrush.
S&amp;P&#x27;s Stablecoin Stability Assessment runs on a 1-to-5 scale. A 1 is &quot;Very Strong.&quot; A 5 is &quot;Weak.&quot; Five factors determine the score: governance structure, <a href="https://www.thecoinzone.com/security/immutable-backup-solutions/" data-wpil-monitor-id="2835">regulatory compliance</a>, redeemability and liquidity, technology and third-party dependencies, and historical track record. These aren&#x27;t traditional credit ratings. They&#x27;re peg stability risk scores for investors.
In the December 2023 launch, USDC scored a 2 (Strong). So did Gemini USD and Pax Dollar. The rest of the initial eight-coin cohort—DAI, FRAX, FDUSD, and TUSD—landed lower on the scale.
Tether didn&#x27;t fare well. S&amp;P&#x27;s December 2023 press release put USDT at a 4 (Constrained). It&#x27;s gotten worse since. Bloomberg Law reported S&amp;P downgraded USDT to &quot;Weak.&quot; That&#x27;s the bottom of the scale. The gap between USDC&#x27;s &quot;Strong&quot; and Tether&#x27;s slide reflects real differences. Collateral transparency. Governance. Both are core SSA criteria.
The ratings are also getting closer to where they&#x27;re actually useful. In October 2025, S&amp;P announced a collaboration with Chainlink to bring SSA data on-chain. DeFi protocols and smart contract applications get real-time access to S&amp;P&#x27;s scores directly inside blockchain environments. That opens the door to something bigger. Stability scores embedded automatically into <a href="https://www.thecoinzone.com/defi/defi-lending-and-borrowing/" data-wpil-monitor-id="2837">lending protocols</a>, collateral frameworks, treasury tools.
The timing matters. Congress is actively debating <a href="https://www.thecoinzone.com/news/trump-fed-nominee-warsh-crypto-ties/" data-wpil-monitor-id="2834">stablecoin legislation</a>. The <a href="https://www.thecoinzone.com/global-macro/nobody-trusts-treasuries-so-tether-stepped-in/" data-wpil-monitor-id="2836">GENIUS Act</a> would build a federal regulatory structure for stablecoin issuers. Formal third-party assessments from agencies like S&amp;P could plug directly into any compliance regime that emerges. Institutional allocators and DeFi treasuries are already leaning on USDC as a primary settlement asset. On networks like Base, it&#x27;s the de facto unit of account. A credible scoring floor from a legacy ratings institution carries weight. On-chain metrics alone can&#x27;t replicate it.

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S&P Global Ratings Grades Stablecoins on Peg Stability

S&P Global's Stablecoin Stability Assessment ranks USDC as 'Strong' while Tether falls to 'Weak.' See how the framework shapes crypto regulation and DeFi.