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Compound Treasury Receives Grade from S&P Global Rankings, First in Institutional Decentralized Finance
Summary: Compound Treasury, a product of Compound Prime LLC, announced on Monday it received a B- credit rating grade from the S&P Global rankings, making it the first institutional decentralized finance (DeFi) offering rated by a major credit rating agency. Reid Cuming, Compound Treasury’s General Manager also took to Twitter for the announcement saying, “So proud ...
Compound Treasury, a product of Compound Prime LLC, announced on Monday it received a B- credit rating grade from the S&P Global rankings, making it the first institutional decentralized finance (DeFi) offering rated by a major credit rating agency.
Reid Cuming, Compound Treasury’s General Manager also took to Twitter for the announcement saying, “So proud of the team at @compoundfinance to make Compound Treasury the first institutional DeFi offering to receive a credit rating. Huge milestone for the crypto industry as major institutions start to better judge and understand digital asset financial offerings.”
“Compound Treasury is predictable, liquid, compliant, transparent, and now rated,” said Cuming, in the announcement. “S&P’s rating helps our institutional clients more easily understand the opportunity and risks of crypto-powered cash management.”
This signals tremendous progress in the crypto industry’s effort to be more established in the mainstream world, while holding on to everything that makes it unique and decentralized.
"The outlook is stable," S&P said of Compound Prime in a statement.
Compound Treasury’s B- mark means that the platform ranks as “speculative” but "currently has the capacity to meet financial commitments,” according to the classification for marks by S&P. The next step for the crypto-powered cash management solution platform is to get into the A ranks, which is not an easy feat. There, the “speculative” wordage would be removed, but the rating definition notes that adverse economic conditions are likely to weaken the obligor’s capacity to meet its financial commitment on the obligation.
Compound Treasury is a USDC-powered yield platform that promises a 4% yield for USDC-denominated business accounts. “Treasury Accounts convert your U.S. Dollars to USDC, a digital dollar stablecoin, which are supplied to the Compound Protocol to generate secure, high-yield interest,” according to their website.
Author: Tyler Irvin
Tags: compound prime,S&P
Link: Compound Treasury Receives Grade from S&P Global Rankings, First in Institutional Decentralized Finance [Copy]
