Monday, July 1, 2024

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 Scores. This makes Compound Treasury the primary institutional decentralized finance (DeFi) providing to be rated by a serious credit standing company, and alerts large progress within the crypto trade’s maturity, as conventional establishments start to evaluate the dangers of digital asset powered monetary choices.

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

“Compound Treasury is predictable, liquid, compliant, clear, and now rated,” mentioned Reid Cuming, Compound Treasury Normal Supervisor, “S&P’s score 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 situations akin to higher regulatory readability for the digital asset trade, or an extended observe document of secure 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 Scores Motion Disclosures web page.

About Compound Treasury

Compound Treasury is a crypto-powered money administration resolution designed for establishments. Accredited traders can earn 4% on USD and USDC with day by 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.

For gross sales inquiries — gross sales@compoundtreasury.com

For media inquiries — media@compoundtreasury.com

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