Partnership brings traditional credit ratings onchain, offering institutions real-time insights into stablecoin risk and resilience
S&P Global Ratings has entered the blockchain space through a new partnership with Chainlink, launching an innovative system to assess how well stablecoins maintain their peg to fiat currencies. The collaboration marks a significant step toward merging traditional finance and decentralized finance (DeFi), aiming to provide onchain risk assessments for institutional investors navigating the $300 billion stablecoin market.
The new framework, called Stablecoin Stability Assessments (SSAs), went live this week on Ethereum’s Base network. Each stablecoin will be rated on a scale from 1 (very strong) to 5 (weak), depending on its ability to retain value stability against fiat currencies.
“As institutional adoption of digital assets accelerates, access to real-time risk data directly onchain is becoming essential for market participants,” said an S&P Global spokesperson.
The assessments will use Chainlink’s DataLink, a high-grade data publishing service, allowing S&P’s ratings to flow seamlessly into smart contracts and DeFi applications.
“S&P Global Ratings is one of the world’s most trusted risk evaluators,” said Sergey Nazarov, CEO of Chainlink. “Bringing their framework onchain helps institutions use stablecoins securely and in compliance with global standards.”
The timing coincides with a sharp rise in institutional interest in stablecoins, fueled by new regulations such as the GENIUS Act, which aims to establish clearer U.S. guidelines for digital assets. The U.S. Treasury Department projects the stablecoin market could surpass $2 trillion by 2028.
Examples of major stablecoins include USDC, backed fully by U.S. dollars and Treasurys, and Ethena’s USDe, which relies on crypto collateral and algorithmic mechanisms to maintain its peg.
The partnership extends Chainlink’s growing presence in traditional finance, following collaborations with Swift, JPMorgan, Mastercard, and Fidelity. Chainlink currently secures nearly $100 billion in DeFi value and has facilitated over $25 trillion in transaction volume through its oracle network.
With S&P’s credit expertise meeting Chainlink’s blockchain technology, the initiative may redefine how financial institutions assess and manage stablecoin risk in real time.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.