S&P Assigns First-Ever Credit Rating to a DeFi Protocol, Rates Sky at B-

S&P Global Ratings assigned a B- (stable outlook) issuer credit rating to Sky Protocol, the decentralized lending platform formerly known as Maker Protocol, in a first for the decentralized finance (DeFi) industry.

The Ethereum-based protocol issues the USDS stablecoin, created when borrowers post approved collateral. With a $7.1 billion market cap, USDS trails only USDT and USDC in size. Sky also offers savings vaults, enabling holders to earn yield via savings USDS (sUSDS).

Jonathan Manley, S&P’s global head of market outreach, called the rating a “significant milestone” that will help bring greater transparency to DeFi.

The move comes as S&P expands its coverage into blockchain-based finance, recently rating tokenized treasury funds and blockchain mortgage securitizations. Sky is itself an investor in Janus Henderson’s tokenized treasury products.

S&P’s separate Stablecoin Stability Assessment rates USDS’s peg-maintenance ability at 4 (constrained) on a five-point scale.

The rating underscores growing overlap between traditional credit analysis and the evolving DeFi market.