S&P Global Ratings has issued its ninth Stablecoin Stability Assessment, this time focusing on Mountain Protocol's yield-bearing stablecoin USDM.

The assessment evaluates a stablecoin's capacity to sustain its peg, with USDM receiving a rating of 3, indicating "adequate" performance according to the firm's criteria.

S&P Global Ratings assesses numerous aspects of the stablecoin, including credit risk, market risk, custody risk, reserve funds, robustness of its liquidation mechanism and available overcollateralization. Additional factors such as governance, regulatory frameworks and third-party dependencies are also considered. The firm then scores these criteria between 1 for “very strong” and 5 for “weak.” 

Other stablecoins previously assessed include USDC at 2 (strong), …