S&P Global Brings Stablecoin Risk Scores Onchain Through Chainlink
S&P World Scores is bringing its stablecoin stability assessments on to blockchains by a partnership with decentralized oracle community Chainlink.
The mixing permits decentralized finance protocols, good contracts and monetary platforms to entry S&P’s danger evaluations of stablecoins in actual time., based on a press launch shared with CoinDesk.
The assessments rating stablecoins from 1 to five based mostly on their potential to keep up a secure worth relative to fiat currencies.
They consider asset high quality, liquidity, redemption mechanisms, regulatory standing and governance. S&P presently evaluates 10 stablecoins, together with USDT, USDC and Sky Protocol’s USDS/DAI.
In contrast to credit score rankings, the assessments are designed to measure operational and structural stability. By putting them onchain, DeFi platforms can reference S&P’s danger assessments robotically, with out offchain information feeds or guide updates.
The service makes use of Chainlink’s DataLink infrastructure, which permits conventional information suppliers to publish to blockchains with out constructing new techniques. The info will initially launch on Base, an Ethereum layer 2 community, with additional expansions based mostly on demand.
The transfer comes because the stablecoin market hit $305 billion in capitalization, up from $130 billion a yr earlier, based on information from DeFiLlama.
S&P World has elevated its exercise within the crypto area since 2021, launching crypto indices and issuing danger assessments for tokenized funds and DeFi protocols. Its first-ever credit standing to a DeFi protocol was assigned again in August.
