S&P Global brings stablecoin risk ratings onchain via Chainlink
Quick Take S&P Global has collaborated with oracle network Chainlink to bring its stablecoin risk ratings onchain for use within decentralized finance. S&P Global Ratings’ Stablecoin Stability Assessments evaluate assets based on their ability to maintain stable value relative to fiat currencies.
S&P Global, the company behind the S&P 500 and Dow Jones Industrial Average, has partnered with oracle network Chainlink to bring its stablecoin risk ratings onchain.
The collaboration delivers real-time access to S&P Global Ratings' Stablecoin Stability Assessments through Chainlink's DataLink service. According to a statement shared with The Block on Tuesday, it enables DeFi protocols and smart contracts to access the firm's independent stablecoin risk analysis via an institutional-grade data publishing standard — without the need to build or maintain new infrastructure.
While not credit ratings, these assessments rank stablecoins based on their ability to maintain value relative to fiat currencies.
S&P Global Ratings launched its SSAs in December 2023, initially publishing evaluations for eight major stablecoins, examining factors like asset quality, governance frameworks, redeemability, liquidity, and technological risk.
Now, as institutional participation in digital assets grows, integrating real-time risk data into blockchain infrastructure has become increasingly important, the firm said, with the collaboration allowing DeFi protocols, lending platforms, and investors to embed S&P Global Ratings' analysis directly into their automated decision-making systems.
"The launch of SSAs on-chain through Chainlink underscores our commitment to meeting our clients where they are," S&P Global Chief DeFi Officer Chuck Mounts said. "By making our SSAs available onchain through Chainlink's proven oracle infrastructure, we're enabling market participants to access our assessments seamlessly using their existing DeFi infrastructure, enhancing transparency and informed decision-making across the DeFi landscape."
Chainlink, which claims to have secured nearly $100 billion in DeFi total value locked and facilitated over $25 trillion in onchain transactions, has also worked with major institutions such as Swift, JPMorgan, and Mastercard.
"I'm very excited that S&P Global Ratings is leveraging Chainlink to bring its Stablecoin Stability Assessments onchain for the first time, empowering the world's largest institutions to adopt stablecoins at scale," Chainlink co-founder Sergey Nazarov said. "By making its SSAs available onchain, Chainlink enables S&P to extend its reach directly into the digital asset economy. S&P Global Ratings is one of the world's most trusted providers of credit ratings, relied upon by the largest banks, asset managers, and governments. This unlocks a critical framework for institutions adopting stablecoins at scale, enabling a more secure and compliant foundation for digital markets."
S&P Global Ratings currently assesses 10 leading stablecoins through its SSA framework, including USDT, USDC, and Sky Protocol's USDS /DAI.
The onchain SSAs will first launch on the Coinbase-incubated Ethereum Layer 2 Base, with plans to expand to other networks over time based on market demand and client feedback.
Last week, S&P Global announced it is launching a new onchain index combining 15 cryptocurrencies and 35 crypto-related stocks. In August, the firm assigned Sky Protocol a "B-" rating, citing high depositor concentration, centralized governance, weak capitalization, and liquidity risks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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