S&P Global Ratings issues a B- issuer credit rating to Sky Protocol, the first rating for a DeFi platform. Sky’s USDS stablecoin is the fourth-largest by market cap at $5.36 billion. Concerns include centralized governance, regulatory uncertainty, and weak capitalization. S&P highlights risks of default and vulnerabilities. Sky co-founder holds nearly 9% of governance tokens.
S&P Global assesses Sky Protocol, highlighting weaknesses such as high depositor concentration and regulatory uncertainty. The protocol’s rating is “B-” with vulnerabilities in adverse conditions. Sky’s capitalization is a primary concern, with a limited reserve buffer. Governance process remains centralized, and risks include smart contract and governance issues.
Stablecoin issuers face increased scrutiny, with Circle USDC rated 2 (strong) and Tether and USDS both rated 4 (constrained). Tether’s transparency issues contrast with USDS’s complex asset base. S&P also rated Figure Technology Solutions, a blockchain-based mortgage securitization platform, “AAA” for a $355 million securitization in June.

Read more at Cointelegraph: S&P Global Expands Credit Ratings to Crypto Institutions, Including Stablecoins and Digital Asset Funds