S&P Global Ratings launched its first on-chain stablecoin stability assessment system within the Ethereum blockchain ecosystem, enabling direct interaction with smart contracts and decentralized finance (DeFi) protocols.
S&P Global Ratings and Chainlink announced the rollout of the Stablecoin Stability Assessments (SSA) on-chain service, which provides real-time stablecoin stability evaluations via Chainlink’s DataLink, an institutional data publishing platform. Institutional investors can now seamlessly integrate S&P’s analytics into their automated decision-making workflows.
The SSA metrics, which aren’t credit ratings, evaluate a stablecoin’s ability to maintain its peg to fiat currencies on a five-point scale, from very strong to weak stability. In the initial phase, data for ten major stablecoins, including USDT, USDC, USDS, and DAI, will be available on the Base L2 blockchain.
According to Chuck Mounts, Chief DeFi Officer at S&P Global, hosting SSA data on-chain enables market participants to access independent risk assessments without leaving the DeFi ecosystem, increasing transparency and efficiency. Sergey Nazarov, Chainlink Co-Founder, noted that the integration of S&P with Chainlink lays the groundwork for large-scale and secure adoption of stablecoins by major global financial institutions.
The new initiative by S&P and Chainlink aims to enhance transparency and improve risk management practices within the digital financial ecosystem. It marks a shift toward fully decentralized financial analytics, where data and decisions are available in real time, and trust is ensured through code.
The initiative comes amid rapid growth in the stablecoin market’s capitalization, driven in part by the recent enactment of the GENIUS Act, a U.S. federal law regulating the stablecoin market.
