S&P International Rankings has issued a B- issuer credit standing to Sky Protocol, previously often known as Maker Protocol, within the first-ever score by a significant credit score company for a decentralized finance (DeFi) platform.
Key Takeaways:
- S&P International gave Sky Protocol a first-ever B- credit standing for a DeFi platform.
- The company flagged dangers together with excessive depositor focus, centralized governance, and weak capitalization.
- S&P mentioned the protocol can meet obligations however is susceptible in adversarial situations.
The score kinds a part of S&P’s ongoing stablecoin issuer assessments, launched in 2023 to judge their means to keep up a peg to fiat currencies.
The evaluation lined the creditworthiness of Sky’s USDS and DAI stablecoins, together with its sUSDS and sDAI financial savings tokens.
S&P Charges USDS ‘Constrained’ With Rating of 4 in First Analysis
In its first analysis, S&P gave USDS a “4” on its stability scale — labeled “constrained” — for sustaining its greenback peg.
Sky Protocol, a decentralized lending platform, facilitates crypto-backed loans and makes use of USDS to assist lending and borrowing exercise.
USDS ranks because the fourth-largest stablecoin by market cap, with $5.36 billion in circulation, in line with CoinMarketCap.
S&P defines a default on this context as a “haircut imposed on token holders.”
The company highlighted potential triggers, equivalent to mass withdrawals exceeding accessible liquidity or credit score losses outpacing capital reserves.
S&P International Rankings has revealed its first-credit score for any stablecoin system: Sky Protocol. pic.twitter.com/xiQE8YyecG
— Sky (@SkyEcosystem) August 8, 2025
Weaknesses flagged embrace excessive depositor focus, centralized governance, reliance on founder Rune Christensen, regulatory uncertainty, and restricted capitalization, its risk-adjusted capital ratio was simply 0.4% as of July 27.
Andrew O’Neil, S&P’s digital belongings analytical lead, advised Cointelegraph {that a} B- score signifies the protocol “can meet its monetary obligations” however stays “susceptible in adversarial enterprise, monetary and financial situations.”
The governance problem was underscored by S&P’s remark that decision-making stays extremely centralized, partly as a result of low voter participation, regardless of Christensen holding almost 9% of governance tokens.
Sky’s Asset-Legal responsibility Committee mentioned the evaluation allowed it to re-examine conventional counterparty danger fashions and assess DeFi-specific dangers equivalent to sensible contract vulnerabilities, oracle dependencies, bridge safety, and governance points.
These had been recognized as areas requiring ongoing monitoring and mitigation.
The score additionally lowered Sky’s anchor rating to “bb,” 4 notches beneath the U.S. banking anchor of “bbb+,” citing the broader regulatory uncertainty going through DeFi.
S&P Ranks USDC Sturdy, Places USDT and USDS in ‘Constrained’ Class
S&P’s stablecoin evaluation ranked Circle’s USDC at 2 (robust), Tether’s USDT at 4 (constrained), and USDS additionally at 4, with O’Neil noting that Tether’s most important problem is transparency whereas USDS faces complexity in its asset base and weaker capital reserves.
S&P launched its stablecoin stability framework in December 2023, and in June, awarded its first blockchain-based mortgage securitization, by Determine Expertise Options, an AAA score for a $355 million pool of mortgage belongings.
Globally, stablecoin regulation is accelerating. Within the US, President Donald Trump signed the primary federal stablecoin invoice on July 18, calling it a “large step” towards securing American dominance in world finance and crypto expertise.
As reproted, Western Union is positioning itself for a brand new part of digital transformation, signaling robust curiosity in utilizing stablecoins to modernize its world remittance operations.
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