S&P First Rates Stablecoins: USDS Issuer Receives B- with Three Major Risks

robot
Abstract generation in progress

[Chain News] PANews, August 8 - S&P Global has granted a "B-" credit rating to USDS issuer Sky Protocol, marking the first time the rating agency has issued a credit rating for a stablecoin system. The report noted that although Sky has maintained stable profits since 2020 and has controlled losses during market fluctuations, there are three major risks: founder Rune Christensen effectively controls protocol decisions through a 9% governance token (low voter turnout exacerbates centralization), a concentration of large deposit users could trigger a bank run, and a 0.4% risk-adjusted capital ratio with a weak static surplus reserve mechanism. S&P particularly emphasized that the cybersecurity risks posed by smart contract asset storage and uncertainties in DeFi regulation constitute potential threats. In the next 12 months, if Sky experiences liquidity shortages, excessive losses in crypto loans, or adverse regulatory conditions, the rating may be downgraded. S&P believes that in the long term, improving issues related to governance centralization, capital adequacy, and deposit centralization is expected to enhance the rating.

RUNE0.52%
DEFI3.22%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 6
  • Repost
  • Share
Comment
0/400
OnChainSleuthvip
· 08-10 04:19
Credit rating B- is a bit risky.
View OriginalReply0
LuckyBlindCatvip
· 08-09 22:28
Can you really say it's stable just because the new B rating?
View OriginalReply0
GasFeeThundervip
· 08-08 17:05
The mechanism design is fragile; another project that will eventually collapse.
View OriginalReply0
SorryRugPulledvip
· 08-08 04:06
This b rating is still considered good, right?
View OriginalReply0
MEVHunterZhangvip
· 08-08 04:03
Only B-? That's really bold.
View OriginalReply0
Hash_Banditvip
· 08-08 03:53
smh... reminds me of mt.gox days. network security is no joke w/ these stables
Reply0
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)