S&P Global assigns ‘B-’ credit rating to Sky Protocol, a first for DeFi
- S&P Global Ratings assigned a B- issuer credit rating to Sky Protocol, previously known as Maker Protocol.
- Sky’s USDS stablecoin has a market cap of approximately $5.36 billion, making it the fourth-largest stablecoin.
- The rating indicates that USDS received a “4” for its ability to maintain its peg to the US dollar, on a scale where “1” is very strong and “5” is weak.
- Key risks identified include high depositor concentration and regulatory uncertainty, with a risk-adjusted capital ratio of only 0.4% as of July.
- Circle’s USDC received a stronger rating of “2,” while Tether (USDT) was rated “4,” similar to USDS.
This marks the first instance where a major credit rating agency has evaluated a DeFi platform, reflecting increased scrutiny on stablecoin issuers as they engage more with traditional finance.
The B- rating suggests that while Sky Protocol can meet its financial obligations, it faces vulnerabilities in adverse conditions, particularly highlighted by its low capitalization and centralized governance structure.(Source)
