S&P Global assigns ‘B-’ credit rating to Sky Protocol, first for DeFi protocol

S&P Global’s credit rating of Sky Protocol reflects key concerns over governance centralization, weak capitalization and regulatory uncertainty.

S&P Global Ratings has assigned a B- issuer credit rating to Sky Protocol, formerly known as Maker Protocol, marking the first time a major credit rating agency has issued a rating for a decentralized finance (DeFi) platform.

The rating is part of S&P’s ongoing assessment of stablecoin issuers, which began in 2023 to evaluate their ability to maintain a stable value relative to fiat currencies. The review covers the creditworthiness of Sky’s liabilities, the USDS (USDS) and DAI (DAI) stablecoins and the sUSDS and sDAI savings tokens. 

Sky Protocol, evaluated for the first time, received a “4” — labeled “constrained” — for USDS’s ability to maintain its peg to the US dollar. The scale runs from “1” for very strong to “5” for weak.

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