S&P Global Ratings carry stablecoin stability assessments directly to blockchains through a collaboration with the decentralized Oracle Network chainlink.
Integration allows decentralized financial protocols, wise contracts and financial platforms to access S&P risk tests of Stablecoins in real time, according to a press release shared with CoinDesk.
Rating assessments of stablecoins from 1 to 5 based on their ability to maintain a stable value associated with fiat currencies.
These are factor in quality of property, liquidity, redemption mechanisms, regulatory and management status. The S&P is currently reviewing 10 stablecoins, including the USDT, USDC and USDS/DAI of Sky Protocol.
Unlike credit ratings, assessments are designed to measure operational stability and structure. By placing them onchain, Defi platforms can refer to the S&P risk automatic assessment, without the offchain or update data feeds.
The service uses chainlink’s Datalink infrastructure, which provides traditional data providers to publish blockchains without the development of new systems. The data will be first launched at the base, an Ethereum Layer 2 network, with further expansion based on demand.
The move came as the Stablecoin market hit $ 305 billion in capitalization, from $ 130 billion a year before, according to data from Defillama.
S&P Global has increased its activity in the crypto space since 2021, Launching crypto indices and release of risk assessments for tokenized funds and defi protocols. Its first credit rating in a defi protocol is Assigned back in August.
