S&P Global Ratings and Chainlink have launched Stablecoin Stability Assessments on Ethereum Base, enabling financial institutions to access real-time, on-chain ratings for stablecoins.
S&P Global Ratings and Chainlink have launched Stablecoin Stability Assessments on-chain
S&P Global Ratings has partnered with Chainlink to provide financial institutions with access to new Stablecoin Stability Assessments (SSA), a rating system that determines how well stablecoins hold their course against fiat.
The SSA assessments are currently live on the Base network (Ethereum Layer-2) and may eventually be available on other blockchains, depending on customer demand, the companies said in a statement.
“With the growth of institutional interest in digital assets, access to risk assessments directly on the blockchain is becoming critical,” the statement said.
How the SSA system works
The ratings will be published via Chainlink DataLink, an institutional service for transferring data to the blockchain.
S&P rates stablecoins on a five-point scale:
- 1 – very stable,
- 5 – weak,
- depending on the token’s ability to maintain a stable value relative to fiat currencies.
This is the first appearance of S&P Global Ratings ratings directly on-chain, where they can be used in DeFi protocols.
“S&P Global Ratings is one of the world’s most trusted credit rating providers. Its appearance on-chain paves the way for a safer and more transparent infrastructure for institutions working with stablecoins,” said Chainlink CEO Sergey Nazarov.
Institutional Trust and a New Standard for the Market
According to the US Treasury Department, the stablecoin market has exceeded $300 billion and could reach $2 trillion by 2028.
Following the passage of the GENIUS Act, which established the legal framework for stablecoins, the demand for on-chain risk ratings is expected to increase.
For example:
- USDC is fully backed by US dollars and Treasury bonds,
- Ethena USDe is an algorithmic stablecoin that maintains its rate thanks to crypto collateral and smart contracts.
Oracles become key after the Black Friday market
Last Friday, during the crypto market crash, USDe temporarily fell to $0.65 on Binance because it was using an illiquid order book instead of an external oracle. The event only highlighted the importance of reliable data sources such as Chainlink.
Chainlink Continues to Build Partnerships
The partnership with S&P Global Ratings adds another link to Chainlink’s long list of collaborations with Swift, Euroclear, JPMorgan, Fidelity, UBS, Mastercard, and even the US government, which recently used Chainlink to publish economic data on-chain.
To date, Chainlink has secured over $25 trillion in transactions and secures nearly $100 billion in DeFi, remaining a leading Web3 oracle.
Related: Bitwise files S-1 to launch first U.S. spot Chainlink ETF
