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S&P Global gives Sky Protocol a "B-" credit rating.
Jinse Finance reports that S&P Global has assigned a credit rating of "B-" to the issuer of USDS, Sky Protocol. According to Sky, this is the first time the rating agency has issued a credit rating for a stablecoin system. According to S&P's official website, a B rating means that the entity is more vulnerable to adverse business, financial, and economic conditions but still has the capacity to meet its financial obligations.
The report points out that "Outlook Stable" but also states that the rating of Sky is constrained by its highly concentrated depositors, highly concentrated governance structure, and weaker risk-adjusted capital strength.
S&P noted that although founder Rune Christensen holds 9% of the governance tokens, due to the low voting rate, Christensen has significant power in determining the future direction of Sky.
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