Sky Gets a B- Credit Rating From S&P Global

S&P Global Ratings has assigned a B- (stable outlook) credit rating to Sky — formerly known as Maker. This is the first time a DeFi protocol has received an official credit rating from a leading agency in the traditional financial sector.

Sky operates on Ethereum and issues the USDS stablecoin, which currently has a market capitalization of $7.1 billion, making it the fourth-largest stablecoin behind USDT, USDC, and USDe.

Jonathan Manley, S&P’s Global Head of Market Outreach, called the rating a “significant milestone” that will help bring more transparency to the DeFi sector.

Expanding Coverage of Blockchain Finance

S&P has been expanding its coverage of blockchain-based financial products. Recent ratings have included tokenized treasury funds and blockchain-based mortgage-backed securities.

Separately, S&P’s Stablecoin Stability Assessment rates USDS’s ability to maintain its U.S. dollar peg at 4 (limited) on a five-point scale.

Key Risks Highlighted by S&P

S&P identified several risks that could lead to default for Sky:

  • Liquidity risk: Withdrawals exceeding available liquidity

  • Credit risk: Loan losses exceeding available capital

  • Low capital buffer: Risk-adjusted equity ratio of just 0.4% as of July 27

  • Deposit concentration: Heavy reliance on a small group of large depositors

  • Centralized governance: Dependence on the founder and core team

  • Regulatory uncertainty: Potential impact from evolving legal frameworks

Stablecoin Ratings Landscape

S&P launched its Stablecoin Stability Assessment in December 2023.

  • Circle’s USDC: 2 (strong)

  • Tether’s USDT: 4 (limited) — same as Sky’s USDS rating

Why This Matters

This first-ever credit rating for a DeFi protocol signals growing overlap between the traditional financial system and the crypto industry — and could set a precedent for other blockchain projects seeking mainstream validation.