S&P Global Teams Up With Chainlink to Bring Stablecoin Risk Ratings On-Chain

S&P Global is steadily growing its presence in the DeFi and blockchain space.

The company is exploring newer ways to bring its trusted financial insights to this space, creating a bridge between traditional finance and decentralized markets.

S&P Global Brings Stablecoin Risk Ratings On-Chain

In a latest press release, S&P Global revealed a new partnership between S&P Global Ratings, the world’s leading provider of credit ratings, benchmarks and analytics, and Chainlink, the industry-standard oracle platform bringing the capital markets on-chain.

S&P Global has teamed up with Chainlink to bring its Stablecoin Stability Assessments (SSAs) on-chain for the first time via DataLink, an institutional-grade data service.

This collaboration marks the first time that S&P Global’s independent stablecoin risk data will be directly accessible within DeFi protocols and smart contracts.

On-Chain SSAs To Launch on Base

The on-chain SSA’s give real time insights into how stable different stablecoins are. Rated on a scale from 1 to 5, these assessments show how well each coin holds its value against fiat currencies. The on-chain SSAs will first be available on Base, Coinbase’s Ethereum Layer 2 network, with plans to expand to other blockchains based on demand and feedback from users.

Notably, DataLink lets S&P Global Ratings securely share data on blockchains without building or managing any new infrastructure.

S&P Global Ratings currently evaluates 10 major stablecoins, including USDT, USDC, and Sky Protocol’s USDS/DAI, using its SSA framework. The assessments look at key factors like asset quality, governance, regulatory compliance, redeemability, liquidity, and overall track record, giving a clear picture of each coin’s stability and reliability.

Backing Secure Stablecoin Adoption

Chuck Mounts, Chief DeFi Officer at S&P Global highlighted that the launch shows its commitment to serving clients in the growing digital space. This move helps make the DeFi market more transparent, trustworthy, and>S&P Global Expands Its Digital Asset Presence

Notably, S&P Global has steadily expanded in the DeFi space, from launching cryptocurrency indices in 2021 to creating DeFi-focused benchmarks and rating tokenized funds.

Last week, it announced the launch of the S&P Digital Markets 50 Index, which combines cryptocurrencies and publicly traded crypto-linked equities.The index combines 15 major cryptocurrencies with 35 stocks linked to digital asset companies, blockchain infrastructure, financial services, and related technologies.