"S&P and Chainlink Tackle DeFi's Stability Crisis with On-Chain Risk Scores"

S&P Global Ratings has partnered with blockchain oracle provider Chainlink to deliver real-time stablecoin risk assessments directly on-chain, marking a significant step in bridging traditional finance (TradFi) and decentralized finance (DeFi). The integration leverages Chainlink's DataLink infrastructure to publish S&P's Stablecoin Stability Assessments (SSAs) to blockchains, enabling DeFi protocols, smart contracts, and institutional investors to automate risk evaluations without manual updates or off-chain data feeds, Coindesk reported.

The SSAs score stablecoins on a 1-to-5 scale (1 being "very strong," 5 "weak") based on factors such as asset quality, liquidity, governance, regulatory compliance, and redeemability, according to a PR Newswire release. S&P currently evaluates 10 stablecoins, including Tether's USDT, Circle's USDC, and Sky Protocol's USDS/DAI. Unlike credit ratings, these assessments focus on operational and structural stability rather than creditworthiness, providing a framework for DeFi platforms to make informed decisions about stablecoin usage, The Block reported.

The service initially launches on Base, an Ethereum layer-2 network incubated by Coinbase, with plans to expand to other blockchains based on demand, CryptoBriefing noted. Chainlink's infrastructure, which has facilitated over $25 trillion in on-chain transactions and secured nearly $100 billion in DeFi total value locked, underpins the initiative. This collaboration allows S&P to extend its reach into the digital asset economy, according to Coindesk, with Chainlink co-founder Sergey Nazarov emphasizing the importance of "a secure and compliant foundation for digital markets."

The move comes as the stablecoin market surges to $305 billion in capitalization as of October 2025, up from $130 billion a year earlier, Coindesk reported. Regulatory developments, including the U.S. passage of the GENIUS Act in July 2025, have also spurred institutional interest in stablecoins. S&P Global Ratings' chief DeFi officer, Chuck Mounts, noted that the on-chain availability of SSAs "enhances transparency and informed decision-making across the DeFi landscape," aligning with the firm's broader strategy to expand its crypto offerings since 2021, CoinhubExchange reported.

S&P's foray into stablecoin assessments builds on its legacy in credit ratings and analytics. The firm launched its first SSA framework in December 2023, initially evaluating eight stablecoins, and later expanded to 10. Notable ratings include a "B-" for Sky Protocol in August 2025, citing risks such as centralized governance and liquidity challenges, RoyalsBlue reported. The initiative also complements S&P's recent launches, including a hybrid index combining cryptocurrencies and crypto-linked equities, reflecting its growing footprint in digital assets.

Critics and market participants alike have highlighted the importance of real-time risk data in a space prone to volatility. For example, the 2023 USDC depeg during the banking crisis underscored the need for robust stability metrics, an S&P Global press release noted. By integrating S&P's assessments into blockchain infrastructure, DeFi platforms can automate compliance and risk management, potentially attracting more institutional capital to the sector.