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Sky Protocol Receives 'B-' Credit Rating from S&P Global for 'Centralization and Liquidity Risks'

Summary: In a breaking news update, S&P Global has awarded a 'B-' credit rating to USDS issuer Sky Protocol, marking the first credit rating issued by the agency for a stablecoin system. The report highlights three main risks: founder Rune Christensen's control over protocol decisions through a 9% governance token (exacerbating centralization), potential for a run ...

In a breaking news update, S&P Global has awarded a 'B-' credit rating to USDS issuer Sky Protocol, marking the first credit rating issued by the agency for a stablecoin system. The report highlights three main risks: founder Rune Christensen's control over protocol decisions through a 9% governance token (exacerbating centralization), potential for a run on funds due to concentration of large depositors, and a weak 0.4% risk-adjusted capital ratio and static earnings reserve mechanism.

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Link: Sky Protocol Receives 'B-' Credit Rating from S&P Global for 'Centralization and Liquidity Risks' [Copy]

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