S&P gives Compound Treasury a credit score

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Compound Treasury, a cryptocurrency business that enables institutions to tap into the Compound protocol’s interest rates, has received a B- rating from S&P, making it one of the first decentralized financial companies to get such a rating.

Credit ratings inform investors about the likelihood that companies or governments issuing debt will be able to fulfill their commitments on time. These grades run the gamut from D to triple-A.

As part of continuing discussions with S&P, Compound Treasury indicated the rating might rise in the future.

As per the S&P Global site, a B score implies that the company is more exposed to poor commercial, financial, and economic situations but has the financial ability to satisfy financial obligations. Angola, Belize, and El Salvador are among the countries having B- credit ratings.

Compound lança Treasury, para incorporar empresas ao DeFi - Cointimes

Nonetheless, the rating tells consumers to anticipate minimal loan losses on the Compound Treasury platform.

According to Compound’s Robert Leshner, the grade is a watershed moment for our sector, signaling that DeFi is on par with conventional financial markets and ready for institutional funding.

“It’s not apples [to] apples because Compound Treasury is a daily liquidity product, whereas with unstable countries you’re taking extreme duration risk,” Leshner said.

The high payouts have drawn institutional and ordinary investors alike to the crypto market. Retail products like Coinbase’s Lend and BlockFi’s interest accounts, on the other hand, have drawn the attention of financial authorities in the United States.

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