S&P Global Ratings Sets Risk Framework for On-Chain Lending Vaults
The framework covers credit, liquidity, management, blockchain, protocol, security and governance risks. The sector’s deposits have grown to $10 billion from $1.5 billion over two years.
S&P Global Ratings has established a framework for evaluating on-chain lending vaults as deposits in the sector climb to $10 billion, up from $1.5 billion two years ago.
The assessment covers credit and liquidity exposure, vault management, blockchain and protocol risks, security, and governance. The firm will conduct its first evaluations of vaults under the framework.
On-chain lending vaults are part of a sector that has seen deposits grow substantially over the past two years. The framework sets out several areas for review, spanning financial risks and the systems and oversight involved in managing vaults.
John Kim
John Kim reports on the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.