S&P Global gives Sky Protocol a “B-” credit rating because of its “centralization and liquidity risks”

PANews reported on August 8 that according to The Block, S&P Global has awarded USDS issuer Sky Protocol "B-" credit rating, the first time the rating agency has issued a credit rating for a stablecoin system. The report pointed out that although Sky has maintained stable profits since 2020 and has controllable losses in previous market volatility, there are three major risks: Founder Rune Christensen actually controls the agreement decision through 9% governance tokens (sluggish turnout has exacerbated centralization), the concentration of large deposit users may trigger a run, and the 0.4% risk-adjusted capital rate and weak static surplus reserve mechanism.

S&P particularly emphasized that the cybersecurity risks and DeFi regulatory uncertainty brought by smart contract asset storage pose a potential threat. In the next 12 months, if Sky experiences insufficient liquidity, excessive losses in crypto loans or unfavorable regulatory situation, the rating may be downgraded. S&P believes that in the long run, improving governance centralization, capital adequacy ratio and deposit centralization are expected to improve ratings.

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