S&P Global Ratings issued a B-emitter credit notation to Sky Protocol, formerly known as Maker Protocol, in the very first note by a large credit agency for a decentralized financial platform (DEFI).
The main dishes to remember:
- S&P Global gave Sky Protocol a very first credit note B for a DEFI platform.
- The agency reported risks, including a high concentration of deposits, centralized governance and low capitalization.
- S&P said that the protocol may comply with obligations but is vulnerable in unfavorable conditions.
The rating is one of the current evaluations of S&P Stablecoin issuers, launched in 2023 to assess their ability to maintain a PEG with fiduciary currencies.
The examination has covered the solvency of the USD and stable -coins of Sky, as well as its Susds and Sdai Savings tokens.
S&P assesses USDS “forced” with a score of 4 in the first assessment
In its first evaluation, S&P gave USDS a “4” on its stability scale – labeled “forced” – to maintain its pego in dollars.
Sky Protocol, a decentralized loan platform, facilitates the loans supported by Crypto and uses USDs to support the loan and loan activity.
According to CoinmarketCap, USDS is the fourth stable of market capitalization, with $ 5.36 billion in traffic.
S&P defines a default value in this context as a “haircut imposed on chip holders”.
The agency has highlighted potential triggers, such as mass withdrawals exceeding available liquidity or credit losses exceeding capital reserves.
The weaknesses reported include a high concentration of deposits, centralized governance, dependence on founder Rune Christensen, regulatory uncertainty and limited capitalization, its capital ratio adjusted to risk was only 0.4% in July 27.
Andrew O’Neil, lead of analysis of digital assets of S&P, said Cointelegraph That a note B indicates the protocol “can respect its financial obligations” but remains “vulnerable under the commercial, financial and economic conditions unfavorable”.
The question of governance was underlined by the observation of S&P according to which decision -making remains very centralized, partly due to the low participation of voters, despite Christensen holding almost 9% of governance tokens.
The Sky assets’ liability committee said that the exam has enabled it to re -examine traditional counterpart risk models and assess specific risk of the challenge such as vulnerabilities of intelligent contracts, oracle dependencies, bridges safety and governance problems.
These have been identified as areas requiring continuous monitoring and attenuation.
The note also lowered the Sky anchoring score to “BB”, four notches below the American banking anchor of “BBB +”, citing the wider regulatory uncertainty against Defi.
S&P USDC Strong class, Mets USDT and USDS in the “constraint” category
The S&P stablecoin assessment classified USDC from Circle to 2 (Strong), USDT from Tether to 4 (constraint), and USDS also at 4, O’Neil noting that the main problem of Tether is transparency while the USDS faces the complexity in its lower asset and capital reserves.
S&P launched its Stablecoin stability framework in December 2023 and, in June, awarded its first mortgage based on blockchain, by figure Technology Solutions, an AAA note for a pool of 355 million dollars in mortgage assets.
On a global scale, the regulation of Stablescoin accelerates. In the United States, President Donald Trump signed the first Federal Stablecoin bill on July 18, calling it a “giant step” to the guarantee of American domination in global finance and cryptographic technology.
As reproduced, Western Union is positioned for a new digital transformation phase, signaling a strong interest in using stalins to modernize its global operations on funding.
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