#DeFiGetsGraded #✅ Benefits: Gaining Institutional Trust & Legitimacy

1. Risk Assessment for Institutions

Traditional financial institutions operate within strict risk and compliance frameworks. S&P-style ratings make it easier for these entities to engage with DeFi protocols confidently—they now have a familiar, standardized method to assess counterparty risk.

2. Bridging the Trust Gap

One of DeFi’s biggest hurdles in mainstream adoption is trust. For institutions that are risk-averse, a recognized third-party rating can validate a protocol’s credibility, governance, and sustainability, helping move from speculative to strategic use.