S&P Global Ratings and Chainlink have joined forces to create on-chain assessments for stablecoins, specifically targeting the traditional finance sector interested in the $300 billion market.

The newly launched Stablecoin Stability Assessments (SSAs), made available on the Ethereum layer-2 network Base, aim to be expanded based on market demand. S&P Global and Chainlink, in a statement seen by Cointelegraph, underline that,

“As institutional adoption of digital assets accelerates, the ability to access real-time risk assessments directly within blockchain infrastructure has become crucial for market participants.”

These assessments will utilize DataLink, an advanced data publishing service offered by Chainlink, enabling S&P Global to evaluate stablecoins using a scale of 1 (very strong) to 5 (weak) to determine their stability against fiat currencies.

Sergey Nazarov, Chainlink’s CEO, mentioned:

“S&P Global Ratings is one of the world’s most trusted providers of credit ratings, relied upon by the largest banks, asset managers, and governments. This unlocks a critical framework for institutions adopting stablecoins at scale, enabling a more secure and compliant foundation for digital markets.”

The stablecoin market has recently grown beyond $300 billion and may potentially reach $2 trillion by 2028, as estimated by the U.S. Treasury Department.

With the establishment of the GENIUS Act, a regulatory framework for stablecoins, the demand for real-time risk profiles is anticipated to rise, allowing institutions to make better-informed decisions about their stablecoin investments.

For instance, USDC is a fiat-backed stablecoin fully collateralized by U.S. dollars and Treasurys, whereas Ethena USDe relies on crypto-based collateral and on-chain mechanisms to maintain value.

Chainlink continues to lead in the on-chain oracle market, facilitating over $25 trillion in transaction value while securing nearly $100 billion in DeFi total value locked.