#DeFiGetsGraded DeFi Gets Graded symbolizes an unprecedented event: S&P Global has for the first time assigned a credit rating to a DeFi protocol, and the Sky protocol received a B− rating.

• This is a kind of evidence that traditional financial institutions are beginning to apply familiar risk assessment mechanisms to decentralized finance (DeFi), which could lead to broader participation from institutions in the traditional market.

Why this is important:

1. A new risk assessment tool for DeFi. Institutional investors can now analyze DeFi projects using criteria they are familiar with.

2. A potential bridge between traditional finance (TradFi) and DeFi.

3. Increasing legitimacy of DeFi. This is a signal that the DeFi market is gaining trust and could open doors to new partnerships and regulatory recognition.