S&P Global partners with Chainlink… offers 'Stablecoin Stability Assessments'

Global credit rating agency S&P Global Ratings(S&P Global Ratings) partnered with blockchain oracle company Chainlink(LINK) to introduce a system that assesses the stability of stablecoins. This partnership enables traditional financial institutions to check the risk levels of stablecoins on the blockchain in real time.

On the 14th (local time), S&P Global said it launched the 'Stablecoin Stability Assessments·SSA' service on the Ethereum(ETH) Layer 2 network 'Base(BASE)'. The system evaluates how stably each stablecoin is pegged to fiat currency values (e.g., 1 dollar), assigning scores from grade 1 (very stable) to grade 5 (unstable).

S&P Global's assessments are connected directly on-chain via Chainlink's data service 'DataLink'. This allows financial institutions or DeFi(DeFi) projects to directly use the credit rating data.

Sergey Nazarov(Sergey Nazarov) Chainlink Chief Executive Officer(CEO) said, "This partnership is the first case of moving a trusted evaluation system of traditional finance onto the blockchain," adding, "institutional investors will be able to use stablecoins in a safer and more transparent way."

The stablecoin market recently exceeded $300 billion, and the U.S. Department of the Treasury expects it to grow to as much as $2 trillion by 2028. S&P Global expects this assessment system to help institutions manage risks and respond to regulation in the rapidly growing stablecoin market.