2 years ago
Quick take:
- Compound Finance’s Treasury has received a B- recognition standing from S&P Global Ratings
- This makes Compound Finance the archetypal organization DeFi offering to beryllium rated by specified a recognition agency
- Traditional institutions person begun to measurement the value of DeFi services
- Regulatory clarity could summation Compound Finance’s ratings and spot much DeFi protocols get akin recognition
Compound Finance’s Treasury has conscionable received a B- recognition standing from S&P Global Ratings. The second is an American recognition standing bureau with implicit 150 years of experience. It publishes fiscal probe and analyses connected stocks, bonds, and commodities. S&P Global Ratings is simply a subsidiary of S&P Global.
Compound Treasury’s Rating is simply a First for DeFi
The B- standing makes Compound Treasury the archetypal organization DeFi offering to beryllium rated by a accepted recognition standing bureau of the magnitude of S&P Global Ratings. It besides signals sizeable advancement successful crypto’s DeFi manufacture arsenic institutions person started to measurement the value of services offered by specified protocols.
According to the squad astatine S&P Global Ratings, Compound Treasury is stable, frankincense ‘reflecting an anticipation of constricted indebtedness losses connected the platform.’ Furthermore, the B- standing factors successful the ongoing regulatory uncertainty surrounding stablecoins specified arsenic USDC, stablecoin-to-fiat convertibility risks, and Compound Treasury’s ‘currently constricted superior basal and 4.00% instrumentality obligation.’
Compound Treasury’s Ratings Could beryllium Upgraded
Additionally, the squad astatine S&P Global Ratings hinted that Compound Treasury’s standing could beryllium upgraded successful the lawsuit of regulatory clarity for the integer plus manufacture oregon ‘a longer way grounds of unchangeable performance.’ This, successful turn, means that the recognition bureau could complaint further DeFi protocols successful the adjacent future.
More connected Compound Treasury
Compound Treasury is simply a integer asset-powered currency absorption solution tailor-made for organization investors. It was launched successful June 2021 by Compound Labs, the genitor institution of Compound Finance, to supply entree to the protocol to businesses and fiscal institutions. Accredited investors tin gain up to 4% connected USD and USDC done Compound Treasury.
Compound Treasury’s imaginativeness is to go ‘the span for non-crypto fiscal institutions to present the halfway benefits of DeFi to the adjacent cardinal users.’
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