S&P Global Ratings Partners with Chainlink for Stablecoin Risk Assessment

According to PANews, S&P Global Ratings has collaborated with Chainlink to bring stablecoin risk assessments on-chain, allowing DeFi protocols to access them in real-time. The assessments, which rate stablecoins on a scale from 1 to 5, evaluate their ability to maintain stability with fiat currencies. Factors considered include asset quality, liquidity, redemption mechanisms, regulatory status, and governance. The initial assessments are available through Chainlink DataLink on Base, an Ethereum Layer 2 network, covering ten stablecoins such as USDT, USDC, and Sky Protocol's USDS/DAI. The focus of these assessments is on operational and structural stability rather than credit ratings. S&P Global Ratings has indicated plans to expand the assessments based on demand.