S&P Global Assigns “B-” Credit Rating to Sky Protocol

According to a report by Jinse Finance, S&P Global has assigned a “B-” credit rating to Sky Protocol, the issuer of USDS. Sky stated that this is the first time the rating agency has issued a credit rating for a stablecoin system. According to S&P’s official website, a B-level rating indicates that the entity is more susceptible to adverse business, financial, and economic conditions, but currently still has the capacity to meet its financial obligations. The report notes that the “outlook is stable,” but also points out that Sky’s rating is constrained by its highly concentrated depositors, highly centralized governance structure, and relatively weak risk-adjusted capital strength. S&P highlighted that although founder Rune Christensen holds 9% of the governance tokens, due to low voter turnout, Christensen wields significant power in determining Sky’s future direction.