Golden Finance reports that S&P Global has given the issuer of USDS, Sky Protocol, a "B-" credit rating. According to Sky, this is the first time that the rating agency has issued a credit rating for a stablecoin system. According to S&P's official website, a B rating means that the entity is more susceptible to adverse business, financial, and economic conditions, but still has the capacity to meet its financial obligations.
The report points out that "Outlook Stable" but also states that the rating of Sky is constrained by its highly concentrated depositors, highly centralized governance structure, and weaker risk-adjusted capital strength.
S&P pointed out that although founder Rune Christensen holds 9% of the governance tokens, due to the low voting rate, Christensen has significant power in determining the future direction of Sky.
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S&P Global gives Sky Protocol a "B-" credit rating.
Golden Finance reports that S&P Global has given the issuer of USDS, Sky Protocol, a "B-" credit rating. According to Sky, this is the first time that the rating agency has issued a credit rating for a stablecoin system. According to S&P's official website, a B rating means that the entity is more susceptible to adverse business, financial, and economic conditions, but still has the capacity to meet its financial obligations. The report points out that "Outlook Stable" but also states that the rating of Sky is constrained by its highly concentrated depositors, highly centralized governance structure, and weaker risk-adjusted capital strength. S&P pointed out that although founder Rune Christensen holds 9% of the governance tokens, due to the low voting rate, Christensen has significant power in determining the future direction of Sky.