S&P Global Partners with Chainlink for On-Chain Credit Ratings
S&P Global Ratings has partnered with Chainlink, a blockchain oracle, to support on-chain stablecoin stability assessments (SSAs).
Stablecoin assessments measure how well stablecoins maintain their pegged value to fiat currencies. These real-time insights allow investors and institutions to monitor risk effectively.
The new system will launch on the Ethereum Layer-2 network Base and may expand to other blockchains depending on market demand.
As institutional adoption of digital assets accelerates, real-time on-chain risk assessments become critical for market participants.
How Stablecoin Stability Assessments Work
Supported by DataLink, Chainlink’s data publishing service for trusted institutions, SSAs rank each stablecoin on a scale from 1 (very strong) to 5 (weak) based on its ability to hold fiat value.
For the first time, S&P Global Ratings data is directly available on blockchain networks for DeFi protocols.
According to Chainlink CEO Sergey Nazarov, the world’s largest banks, asset managers, and governments rely on S&P Global Ratings. Integrating this information on-chain establishes a secure and compliant foundation for institutional use of stablecoins at scale.
Also Read : Dubai VARA Imposes Fines on 19 Unlicensed Crypto Companies
Growth of the Stablecoin Market and Risk Management
Estimates by the US Treasury suggest the stablecoin market has surpassed $300 billion and could reach $2 trillion by 2028.
New regulations like the GENIUS Act are prompting institutions to use real-time information to manage stablecoin risk.
Examples of Stablecoins Using Oracles:
- USDC – fully backed by cash and US Treasury equivalents.
- Ethena USDe – an algorithmic stablecoin backed by crypto collateral with on-chain methods.
Many of these stablecoins rely on blockchain oracles like Chainlink to provide tamper-resistant price feeds, ensuring proper peg maintenance.
During a recent market event, the USDe value on Binance fell to $0.65 due to low liquidity. A lack of oracle price feeds in thin liquidity triggered the drop, highlighting the importance of reliable oracle data.
Chainlink Expands Partnerships in TradFi and Government
Chainlink’s collaboration with S&P Global adds to its partnerships with:
The US government has also utilized Chainlink oracles to publish economic data on-chain, promoting transparency in public spending.
Despite growing competition, Chainlink leads the on-chain oracle ecosystem, securing nearly $100 billion in DeFi total value locked (TVL) and over $25 trillion in transaction volume.
Sergey Nazarov stated that this partnership sets a new standard for institutional-grade digital asset risk assessment.
