USDS gets B- rating from S&P, first stablecoin issuer to receive a rating.

USDS gets B- rating from S&P, first stablecoin issuer to receive a rating.

In a significant milestone for the stablecoin industry, Sky Protocol’s USDS stablecoin has received a B- rating from S&P Global Ratings, marking the first time any stablecoin issuer has been awarded a credit rating. This rating, issued on July 2, 2025, is an important step towards legitimizing stablecoins within the traditional financial ecosystem [1].

Sky Protocol, the largest decentralized stablecoin protocol, has been recognized for its transparent and interpretable mechanics, which align with the evaluative standards of a major ratings agency. The rating was based on the protocol’s structure, collateral reserves, smart contract mechanics, and systemic risk profile, evaluated using methodologies typically applied to nonbank financial institutions [1].

The B- rating, with a stable outlook, validates Sky Protocol’s “Endgame” roadmap towards an investment-grade rating. It also demonstrates that the protocol’s transparency and mechanics are parseable and translatable for a traditional credit investment audience. Furthermore, it anchors USDS firmly in the traditional asset universe, paving the way for increased adoption and integration into global finance [1].

Sky Protocol’s CEO expressed gratitude to the S&P Digital Assets team for their sensitivity to the risks and benefits of a decentralized stablecoin model. The rating action underscores the potential of decentralized stablecoins to offer transparency, instant settlement, reduced counterparty risk, and higher transaction velocity, all while addressing the fragmentation and lack of standardization that have hindered their adoption [1].

Tether, the largest stablecoin issuer, has also been in the spotlight for its profitability and market influence. With an estimated valuation of $515 billion, Tether made more than $13 billion in profit last year and is exploring new investment opportunities within the U.S. market [2]. However, unlike Sky Protocol, Tether has not yet received a credit rating, and its focus remains on emerging markets where stablecoins serve as a hedge against hyperinflation.

Looking ahead, the B- rating for USDS opens new avenues for institutional investors, who can now consider stablecoins as a viable asset class. As stablecoins continue to evolve and gain regulatory clarity, their potential to disrupt traditional finance and provide new financial services to unbanked populations becomes increasingly evident.

References:
[1] https://kitchen.steakhouse.financial/p/credit-ratings-making-stablecoins
[2] https://finance.yahoo.com/news/tether-largest-stablecoin-issuer-making-080700051.html