Financial knowledge large S&P Global has begun shifting stablecoin stability rankings on-chain by forming a strategic partnership with blockchain knowledge supplier Chainlink.
S&P Global Rankings and Chainlink Collaboration: Shifting Stablecoin Rankings to Blockchain
Because of this collaboration, decentralized finance (DeFi) protocols, sensible contracts, and digital finance platforms will now have real-time entry to S&P’s stablecoin danger assessments.
The brand new system assigns a stability rating between 1 and 5 to stablecoins primarily based on standards reminiscent of asset high quality, liquidity, redemption mechanism, regulatory standing, and governance. This gives buyers and builders with clear and goal knowledge on the reliability of stablecoins.
This service is being developed utilizing Chainlink’s DataLink infrastructure and can initially be accessible on Ethereum’s Layer 2 community, Base. It’s deliberate to broaden to different blockchain networks in the future, relying on demand.
S&P Global Rankings presently evaluates 10 totally different stablecoins, together with USDT (Tether), USDC (Circle), and Sky Protocol’s USDS/DAI.
Specialists state that this integration will construct a robust bridge between conventional finance (TradFi) and the DeFi ecosystem and enhance institutional buyers’ confidence in digital belongings.
*This is just not funding recommendation.
