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Jafrin Ahmed
May 10, 2022
by Jafrin Ahmed

Compound Treasury Receives Credit Rating in a Historic First for DeFi

Compound Treasury S&P rating DeFi
Compound Finance’s Treasury has just received a B- credit rating from S&P Global Ratings, making the decentralized lending protocol the first-ever DeFi institutional offering to be rated by a major credit rating agency.

S&P Rates B- to Compound Treasury

On Monday, DeFi, protocol Compound Treasury announced that it received a credit rating of B- from S&P Global Ratings. It is the first time an institutional DeFi platform offering has been rated by a traditional credit rating agency of the magnitude of S&P Global Ratings.

The S&P Global Ratings' investment suitability scale ranges from AAA (extremely strong) to D (in default).

A B- rating, hence means that the business is more vulnerable to adverse financial conditions, although it “currently has capacity to meet financial obligations,” S&P Global Ratings clarified its explanation.

Watershed for Moment Crypto Industry

S&P said Compound had a less-than-investment-grade rating owing to “weaknesses” including operational and convertibility risks between fiat money and stablecoins.

Still, Compound's founder Robert Leshner told a crypto publication that the rating represents "a watershed moment for our industry, and signals that DeFi is an equal peer to traditional financial markets, and ready for institutional capital."

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Compound Treasury Receives Credit Rating in a Historic First for DeFi
Jafrin Ahmed
Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

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