Modifiers
The modifiers applied on top of the base rating.
Collateralization
Measures total reserve coverage, including any dedicated insurance vehicles, relative to outstanding token supply. For Alternative Asset and Active Strategy Stablecoins, collateralization is assessed within the Asset Quality framework via Monte Carlo or Black-Cox modeling.
Governance
4 items
Market Adoption
Analyzes market capitalization relative to leading peers in the same category, serving as a proxy for market confidence and the issuer's incentive to address material deficiencies.
Operational Security
7 items
Peg Track Record
Evaluates the token's historical performance in maintaining its intended peg, incorporating quantitative measures of volatility, deviation frequency, and drawdown severity relative to the reference asset.
Regulatory Cover
Assesses the scope and relevance of licenses held by the issuing entity, alongside bankruptcy remoteness for both the issuer and custodian structures.
Reserve Management
Evaluates the operational competence and track record of the institution or individuals managing productive assets. Applies only where reserves are actively managed or yield-generating.
Reserves Transparency
Evaluates the mechanisms by which reserve adequacy is demonstrated, including on-chain verification, audit attestations, and third-party assurance.
User Rights
Examines the clarity and enforceability of redemption terms, asset segregation provisions, and the recognition of beneficial ownership within the issuer's documentation.