S&P Global Brings TradFi Risk Grades to $10 Billion Crypto Lending Vaults
S&P Global Ratings has launched a Vault Risk Assessment (VRA) to grade crypto lending vaults, a market now holding about $10 billion. The ratings giant stresses that its new scores are not credit ratings. Think of a lending vault as a blockchain-based bond fund that gathers deposits and lends them to borrowers. However, deposits grew more than sixfold in two years, while disclosure standards still differ from vault to vault. Sponsored Sponsored How S&P Plans to Score Crypto Lending Vaults The announcement lists six areas of risk. They span portfolio credit quality, liquidity mismatches, the curator, the blockchain, the protocol, and vault security and governance. Crypto lending vaults deposits grew from $1.5 billion to $10 billion. Source: BeInCrypto Curators are the firms that decide where a vault deploys its capital. As a result, their choices can decide whether depositors get their money back during a market shock. For crypto lending vaults, each assessment gives a forward-looking view of how likely investors are to suffer losses, S&P says. It will not comment on the yields that vaults advertise. S&P Global risk factors for crypto lending vaults. Source: BeInCrypto James Wiemken, head of global ratings services at S&P Global Ratings, pointed to uneven reporting across the sector. Sponsored Sponsored “…the inherent complexities and varying disclosure









