{"id":26359,"date":"2022-05-09T14:21:15","date_gmt":"2022-05-09T18:21:15","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=26359"},"modified":"2022-05-09T14:21:22","modified_gmt":"2022-05-09T18:21:22","slug":"sp-global-ratings-grants-compound-treasury-b-credit-rating","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/sp-global-ratings-grants-compound-treasury-b-credit-rating\/","title":{"rendered":"S&P Global Ratings grants Compound Treasury B-credit rating"},"content":{"rendered":"\n
Compound Treasury, a decentralized finance <\/a>(DeFi) technology, has acquired a B- credit rating from S&P Global Ratings.<\/h5>\n\n\n\n
\"S&P
S&P Global Ratings grants Compound Treasury B-credit rating<\/figcaption><\/figure><\/div>\n\n\n\n

According to Compound's team, this is the first time a major credit agency has given an institutionalized DeFi system a rating. The investing appropriateness scale at S&P Global Ratings goes from AAA (very strong) to D (in default).<\/p>\n\n\n\n

A B- rating suggests that the issuer can satisfy its financial obligations, despite continuing vulnerabilities to commercial, financial, and economic situations.<\/p>\n\n\n\n

S&P Global bases its conclusion on the unpredictability of the regulatory system for stablecoins\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> like USD Coin (USDC), stablecoin-to-fiat convertibility concerns, and the Treasury's “restricted capital base” with a 4.00 percent per annum return commitment.<\/p>\n\n\n\n

However, the rating agency claims that the Compound protocol's track record of zero losses in USDC helps to limit the offering's risks.<\/p>\n\n\n\n

“S&P's rating helps our institutional clients<\/a> more easily appreciate the possibilities and hazards of crypto-powered cash management,” Compound Treasury's general manager Reid Cuming said of the development.<\/p>\n\n\n\n

Compound Treasury's ratings could be improved as part of ongoing conversations with S&P Global if there is more regulatory certainty for digital assets<\/a> or a longer track record of outstanding performance.<\/p>\n\n\n\n

The underlying DeFi lending Compound protocol supports the Compound Treasury and its yield. At the time of publication, 301,650 suppliers had contributed $6.94 billion in digital assets to the protocol, while 9,275 borrowers had borrowed $1.83 billion.<\/p>\n\n\n\n

While the yield from Compound Treasury is higher than that of major US banks, it is only available to Accredited Investors or individuals with sufficient income and net worth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Compound Treasury, a decentralized finance (DeFi) technology, has acquired a B- credit rating from S&P Global Ratings. According to Compound’s team, this is the first time a major credit agency has given an institutionalized DeFi system a rating. The investing appropriateness scale at S&P Global Ratings goes from AAA (very strong) to D (in default). […]<\/p>\n","protected":false},"author":12,"featured_media":26398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-26359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/05\/image-54.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/26359","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=26359"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/26359\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/26398"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=26359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=26359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=26359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}