S&P Global Ratings is bringing its stablecoin stability assessments directly to blockchains through a partnership with the decentralized oracle network Chainlink.
The integration allows decentralized financial protocols, smart contracts, and financial platforms to access risk assessments of S&P stablecoins in real-time, according to a press release shared with CoinDesk.
Evaluations rate stablecoins from 1 to 5 based on their ability to maintain a stable value relative to fiat currencies.
They take into account asset quality, liquidity, reimbursement mechanisms, regulatory status and governance. S&P currently evaluates 10 stablecoins, including Sky Protocol’s USDT, USDC, and USDS/DAI.
Unlike credit ratings, assessments are designed to measure operational and structural stability. By placing them on-chain, DeFi platforms can reference S&P risk assessments automatically, without off-chain data sources or manual updates.
The service uses Chainlink’s DataLink infrastructure, which allows traditional data providers to publish to blockchains without creating new systems. The data will initially be launched on Base, an Ethereum layer 2 network, with further expansions based on demand.
The move comes as the stablecoin market reached $305 billion in capitalization, up from $130 billion the previous year, according to data from DeFiLlama.
S&P Global has increased its activity in the crypto space since 2021, launching crypto indices and issuing risk assessments for tokenized funds and DeFi protocols. Its first credit rating for a DeFi protocol was assigned in August.
