Sky Protocol Rating: S&P Global Issues a Cautionary B- Grade

Key Points

1. S&P Global Ratings assigned Sky Protocol a B- rating, indicating it is speculative and subject to high credit risk.

2. The USDS stablecoin received a '4' (constrained) rating from S&P Global due to risks associated with maintaining its peg to the US dollar.

3. The assessment identified key challenges for Sky Protocol, including regulatory uncertainty and weak capitalization.

4. S&P Global's involvement in rating crypto projects like Sky Protocol reflects the growing maturity of the decentralized finance (DeFi) industry.

5. The B- rating serves as a baseline for Sky Protocol, emphasizing the need for improvements in risk management and governance to enhance its future rating.