Chainlink has become the official blockchain-based oracle provider for S&P Global Ratings via a new partnership that will allow financial institutions on-chain access to S&P’s new stablecoin stability assessments.

The partnership was announced on Oct. 14, and Chainlink will serve as the delivery layer for S&P’s Stablecoin Stability Assessments (SSAs), making them directly available on blockchain networks through its DataLink service. 

In layman’s terms, SSAs evaluate how well stablecoins are able to maintain their peg with fiat currencies. 

Unlike formal credit ratings, they are independent evaluations of risk, incorporating factors such as collateral composition, governance structure, liquidity support, and technological soundness.

Through the integration, DeFi protocols and institutional participants will be able to access S&P’s risk evaluations in real time and embed them into smart contracts and automated financial systems. 

Commenting on the development, Chainlink’s CEO Sergey Nazarov said this marks the first time S&P’s analysis has been made directly accessible on-chain, adding that it “unlocks a critical framework for institutions adopting stablecoins at scale.”

Oracles serve as the connective tissue between real-world data and blockchain-based systems. 

Smart contracts, by design, are unable to access off-chain information on their own, but Oracles solve this limitation by feeding verified external data, such as market prices, economic indicators, or credit assessments, into smart contracts. 

As such, Smart contracts can respond to real-world events in a secure and trust-minimised way.

Chainlink’s infrastructure will enable the secure and reliable delivery of this data via its decentralized oracle network, allowing financial applications to consume the information without needing to develop their own data pipelines. 

For defi protocols, this plug-and-play capability is especially critical as they navigate an increasingly complex regulatory and technological environment. 

“By making our SSAs available on-chain through Chainlink’s proven oracle infrastructure, we’re enabling market participants to access our assessments seamlessly using their existing DeFi infrastructure, enhancing transparency and informed decision-making across the DeFi landscape,” S&P Global’s Chief DeFi Officer Chuck Mounts added.

Chainlink’s decentralized network of node operators, coupled with cryptographic guarantees and a reputation-based incentive model, offers a level of reliability that many other oracle solutions have struggled to match.

As such,  Chainlink has become the preferred oracle provider for systems that demand high data integrity, particularly when financial value or regulatory compliance is at stake.

This reliability has not gone unnoticed by major players. In addition to S&P Global Ratings, Chainlink has onboarded a string of influential partners in recent months.

For instance, the Global Legal Entity Identifier Foundation (GLEIF) recently joined forces with Chainlink to create on-chain identity verification mechanisms for digital assets.

Financial institutions can use this to meet Know Your Customer and anti-money laundering standards without sacrificing user privacy.

Chainlink also partnered with BNB Chain to bring verified economic data, such as the GDP numbers and the PCE Price Index from the United States Department of Commerce, onto the blockchain.

Meanwhile, Plasma, a fast-growing Layer 1 network focused on stablecoins, recently joined Chainlink’s SCALE program to incorporate its suite of oracle services — including Data Feeds, Data Streams, and Cross-Chain Interoperability Protocol — from day one.

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