#DeFiGetsGraded

Evaluation of stablecoins and crypto

This rating of the DeFi platform by S&P Global Ratings highlights a growing effort by the agency to replicate its standardized assessment towards the financial situation of participants in the digital asset industry. In 2022, S&P granted its first DeFi rating to the Compound protocol, also with a B- just like Sky.

Recently, S&P rated the blockchain credit platform, Figure Technology, with a AAA, which represents the highest credit rating awarded by the agency. Other companies in the crypto sector have also received an assessment, such as Coinbase, which currently holds a rating of "BB" according to the latest review in mid-2024. However, this speculative rating did not affect the integration of Coinbase (COIN) into the popular S&P 500 index.

Meanwhile, through its "Stablecoin Stability Assessment," a framework launched to evaluate the ability of stablecoins to maintain their parity with fiat currencies, the agency has assessed the major stablecoins in the market. In these evaluations, USDC from Circle received a rating of 2 ("strong"), while USDT from Tether and DAI from Sky received a rating of 4 ("restricted"). It is important to note that DAI and USDS, both from Sky, operate in parallel.