SS #40 - S&P Global Stablecoin Ratings Go Live On-Chain via Chainlink

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Good morning. As we move into mid-October, the stablecoin industry continues its trajectory of accelerated institutional integration.

The most notable development on the compliance front is the collaboration between global rating agency S&P Global Ratings and oracle network Chainlink. This partnership will bring S&P's Stablecoin Stability Assessments (SSAs) directly onto the blockchain, granting DeFi protocols and institutions real-time, independent risk analysis. Initially launching on the Base network before expanding to others, this move establishes a critical, verifiable framework for institutional-grade decision-making in the decentralized ecosystem.

Meanwhile, this week also featured a sharp reminder of the operational risks that still exist within the ecosystem. Stablecoin issuer Paxos accidentally minted a massive $300T worth of PYUSD in a momentary internal technical error, a quantity far exceeding global GDP. Fortunately, the mistake was quickly identified and the excess tokens were burned within minutes, confirming that all customer funds remained secure.

We hope you have a pleasant weekend. Don't worry about missing any breaking stablecoin developments, as Stablescope will continue to deliver the latest news straight to your email.

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In Today's Edition:

• Headline: S&P Global Stablecoin Ratings Go Live On-Chain via Chainlink

• Quick Bites: Paxos Mistakenly Mints $300T PYUSD on Ethereum

• Yield of the Week: 32.85% APY on Avantis

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HEADLINE

S&P Global Stablecoin Ratings Go Live On-Chain via Chainlink

State of play: S&P Global Ratings is collaborating with oracle network Chainlink to bring its Stablecoin Stability Assessments (SSAs) directly onto the blockchain, allowing DeFi protocols and institutions real-time access to risk analysis.

• S&P's SSAs, which evaluate stablecoin risk factors like governance, liquidity, and asset quality, are now accessible on-chain via Chainlink's DataLink.

• This integration enables automated, institutional-grade risk analysis for DeFi protocols, lending platforms, and smart contract decision-making systems.

• The collaboration is seen as a crucial step for enhancing transparency and facilitating the secure, compliant adoption of stablecoins at scale by major financial institutions.

What’s Next: Expect major DeFi protocols to rapidly integrate the S&P SSAs to better manage collateral risk and optimize capital allocation. The service, starting on Base, will quickly expand to other networks, potentially prompting more TradFi risk providers to follow suit and tokenize their data.

Why it Matters: This introduces a widely trusted, institutional-grade risk framework directly into the DeFi ecosystem, significantly enhancing system stability and investor protection. This critical bridge between centralized financial analysis and decentralized operations is essential for accelerating institutional comfort and mass adoption of stablecoins.

Our Take: Investors and protocols must strategically utilize these SSAs to refine collateral requirements and optimize capital allocation toward higher-rated stablecoins. The core challenge for the decentralized community will be establishing consensus on how to reliably and fairly incorporate this external, authoritative risk score into decentralized governance models.

QUICK BITES

• Analysts see Circle as top stablecoin play.

• Bridge applies for national bank trust charter.

• Aurelion completes $134M purchase of XAUT.

• OwlTing set for Nasdaq debut via direct listing.

• Paxos mistakenly mints $300T PYUSD on Ethereum.

• Celsius wins nearly $300M from Tether in bankruptcy case.

• ODDO BHF enters crypto with euro-backed stablecoin EUROD.

• S&P Global brings stablecoin risk ratings onchain via Chainlink.

• DWS sees stablecoins emerging as core payments infrastructure.

• Visa says it wants to build the rails for lending in onchain finance.

• Ripple expands custody network to Africa following RLUSD rollout.

• Bernstein projects USDC stablecoin supply to triple by end of 2027.

• Tether-linked USDT0 and XAUT0 launch on Solana via LayerZero tech.

• Circle taps Safe as 'premier institutional storage solution' for USDC stablecoin.

• YZi Labs leads $50M round in stablecoin payment firm Better Payment Network.

YIELD OF THE WEEK

Nest Basis Vault: 10.76% APY

• The Nest Basis Vault is a market-neutral yield product that combines regulated basis trades with tokenized treasuries, aiming to generate stable, non-directional returns under the management of experienced institutional players.

• The vault offers wide accessibility across multiple networks, allowing users to deposit stablecoins such as pUSD on Plume Network, USDT0 on Plasma, and USDC on the Ethereum network.

• The structure emphasizes user-centric terms, featuring zero protocol fees; however, capital redemption is subject to a standard ten-day cooling-off period.

Felix feUSD Stability Pools: 13.91%-42.45% APY

• Felix operates as an over-collateralized CDP (Collateralized Debt Position) stablecoin system designed to maintain solvency through built-in safety buffers against market volatility.

• The protocol maintains its decentralized nature by eliminating a central custodian, instead relying on liquidators and redeemers to ensure all circulating feUSD is fully backed.

• Users can generate yield by depositing feUSD into a stability pool, which acts as a critical liquidation backstop; in return, they receive borrower interest and liquidation proceeds while accepting associated "bad debt" risk.

Avantis LP Vault: 32.85% APY

• Avantis is consolidating its liquidity into a single, unified ERC-4626 vault, avUSDC, simplifying deposits while enabling the token to be used natively as collateral within the platform.

• Liquidity providers earn organic, steady yield from 100% of trading fees (excluding liquidations), with returns directly reflecting platform volume rather than directional market speculation.

• The avUSDC vault serves as the counterparty for all trades, with a protective buffer designed to absorb trader losses before touching LP capital, while market-makers ensure the vault remains delta neutral for managed risk.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.