S&P Global Ratings brings its stablecoin stability ratings directly to blockchains through a partnership with decentralized oracle network Chainlink.
The integration allows decentralized financial protocols, smart contracts and financial platforms to access risk assessments of S&P stablecoins in real-time, according to a press release shared with CoinDesk.
Ratings rate stablecoins from 1 to 5 based on their ability to maintain stable value compared to fiat currencies.
They take into account asset quality, liquidity, buyback mechanisms, regulatory status and governance. S&P currently rates 10 stablecoins, including USDT, USDC, and Sky Protocol’s USDS/DAI.
Unlike credit ratings, assessments are designed to measure operational and structural stability. By placing them on-chain, DeFi platforms can automatically reference S&P risk assessments, without off-chain data feeds or manual updates.
The service uses Chainlink’s DataLink infrastructure, which allows traditional data providers to publish to blockchains without building new systems. Data will initially launch on Base, a layer 2 Ethereum network, with further expansion based on demand.
This decision comes as the stablecoin market reached a capitalization of $305 billion, compared to $130 billion a year earlier, according to data from DeFiLlama.
S&P Global has increased its crypto activity since 2021, launching crypto indices and publishing risk assessments for tokenized funds and DeFi protocols. Its first-ever credit rating to a DeFi protocol was assigned in August.
