Financial data giant S&P Global is partnering with oracle network Chainlink to bring stablecoin risk assessments onto the chain. This will give decentralized finance (DeFi) protocols direct and real-time access to S&P's independent "Stablecoin Stability Assessment" (SSA) analyses.
Stablecoin data moves onto the chain
S&P Global Ratings' SSA model scores stablecoins based on their ability to maintain their stable value against fiat currencies. These assessments are not credit scores but are based on criteria such as asset quality, liquidity, governance structure, repayability, technological infrastructure, and regulatory compliance.
S&P launched this system in December 2023, assessing eight major stablecoins. As of today, the company tracks ten different stablecoins, including USDT, USDC, and Sky Protocol's USDS/DAI token. With the new integration, these assessments can now be used directly on the blockchain. The integration, provided through Chainlink's institutional data publishing infrastructure, DataLink, enables DeFi platforms and smart contracts to access S&P's risk analysis without manual intervention. This allows credit protocols, yield platforms, or investors to integrate this data directly into their smart contracts and automate risk management processes.
Chuck Mounts, head of S&P Global's DeFi unit, described the partnership as "meeting our customers where they are."
"By moving our stablecoin assessments on-chain via Chainlink's trusted oracle infrastructure, we enable market participants to seamlessly access S&P analysis on DeFi systems. This step strengthens both transparency and informed decision-making."
Chainlink co-founder Sergey Nazarov described S&P Global Ratings' move as "a new milestone for institutional adoption."
"S&P is one of the world's most trusted rating agencies. This partnership provides a critical framework for large institutions to use stablecoins more securely and compliantly." The Onchain SSA service will initially launch on the Ethereum Layer-2 network Base, supported by Coinbase. It is planned to expand to other networks based on demand.
S&P Global has recently rapidly increased its digital asset footprint. Last week, the company introduced a new on-chain index combining 15 cryptocurrencies and 35 crypto-focused stocks. In August, it further solidified its risk assessments for DeFi projects by giving Sky Protocol a "B-" rating.
On the Chainlink side, the sheer size of the system is striking. To date, the Oracle network has facilitated data transfer in more than $25 trillion in on-chain transactions and secured approximately $100 billion in total locked DeFi value.
LINK price is declining
Meanwhile, the LINK price is trending downward. The coin has lost nearly 20% of its value over a seven-day period, partly due to the loss of momentum in Bitcoin and other altcoins over the weekend. At the time of writing, it is trading at $18.36.
