S&P Rates DeFi Protocol Sky at B- Equivalent to Republic of Congo Debt

S&P Global has assigned a B- credit rating to the DeFi protocol Sky, equating its creditworthiness with that of the Republic of the Congo’s sovereign debt, placing it within the high-risk “speculative grade” category [1]. This marks S&P’s first-ever credit rating for a decentralized finance (DeFi) protocol. The rating reflects concerns over the platform’s high depositor concentration, heavy reliance on founder Rune Christensen, and ongoing regulatory uncertainties in the DeFi space. However, the agency also acknowledged that Sky has maintained low credit losses and stable revenue since 2020 [1].

The rating applies specifically to Sky’s stablecoins—USDS, DAI—and their associated savings derivatives. It does not extend to the governance token SKY. As the fourth-largest stablecoin issuer on the Ethereum network, Sky manages a circulating supply of $7.9 billion [1]. The platform has responded positively, stating that the rating represents a key step toward aligning with traditional financial systems. Sky has suggested that future ratings could improve as DeFi becomes more widely understood and integrated into mainstream finance [1].

Analysts view this development as significant, noting that it indicates a growing interest from traditional rating agencies in evaluating DeFi protocols. While the B- rating is not investment-grade, it signals that institutions are starting to take DeFi seriously and are applying conventional credit risk frameworks to the space [1]. This could encourage further institutional participation in DeFi platforms, provided they can address the highlighted risks and enhance transparency.

Source:

[1] BlockBeats News – Rating Agency S&P: DeFi Protocol Sky Credit Rating on Par with Congo Debt, at a Lowly B- (https://www.theblockbeats.info/en/flash/306532)