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Compound Treasury Receives S&P Credit score Ranking | by Reid Cuming | Compound Labs

At the moment, Compound Treasury acquired a B- credit standing from S&P International Rankings. This makes Compound Treasury the primary institutional decentralized finance (DeFi) providing to be rated by a serious credit standing company, and alerts great progress within the crypto business’s maturity, as conventional establishments start to evaluate the dangers of digital asset powered monetary choices.

S&P’s outlook is steady, reflecting an expectation of restricted mortgage losses on the Compound Treasury platform. In assigning its ranking and steady outlook, S&P cited the unsure regulatory regime for stablecoins (USDC), stablecoin-to-fiat convertibility dangers, Compound Treasury’s presently restricted capital base and 4.00% return obligation; S&P views the Compound protocol (the supply of yield for Compound Treasury) observe report of zero USDC losses as partially mitigating the capital dangers of the providing.

“Compound Treasury is predictable, liquid, compliant, clear, and now rated,” stated Reid Cuming, Compound Treasury Normal Supervisor, “S&P’s ranking helps our institutional shoppers extra simply perceive the chance and dangers of crypto-powered money administration”.

As a part of ongoing discussions with S&P, Compound Treasury’s scores may very well be upgraded in upside eventualities corresponding to larger regulatory readability for the digital asset business, or an extended observe report of steady efficiency.

Compound Treasury was supported all through the credit standing analysis course of by Klaros Group, an advisory and funding agency, and Gauntlet, a monetary modeling and simulation platform for blockchains.

Discover Compound Treasury’s full scores report at S&P International Rankings Motion Disclosures web page.

About Compound Treasury

Compound Treasury is a crypto-powered money administration resolution designed for establishments. Accredited buyers can earn 4% on USD and USDC with every day liquidity; the best approach for establishments to entry the advantages of decentralized finance.

Compound Treasury is obtainable by Compound Prime, LLC, a subsidiary of Compound Labs, Inc.

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