S&P Global Ratings has assigned a B- rating with a stable outlook to Sky Protocol, the decentralized lending platform formerly known as Maker Protocol—an industry first for decentralized finance (DeFi).

The Ethereum-based protocol issues the USDS stablecoin, created when borrowers post approved collateral. With a $7.1 billion market cap, USDS ranks third, behind USDT and USDC. Sky also offers savings vaults that let holders earn yield via savings USDS (sUSDS).

Jonathan Manley, S&P’s global head of market outreach, mentioned that this rating represents a “significant milestone” enhancing transparency in DeFi.
Translation: Jonathan Manley, S&P’s global head of market outreach, noted that this rating is a turning point that will improve visibility in DeFi.

The rating comes amid S&P’s extension into blockchain-based finance, where they have recently rated tokenized treasury funds and blockchain mortgage securitizations. Notably, Sky invests in Janus Henderson’s tokenized treasury products.

S&P’s separate Stablecoin Stability Assessment gives USDS’s peg maintenance a rating of 4 (constrained) on a five-point scale, indicating a critical overlap between traditional credit analysis and the evolving DeFi ecosystem.