S&P Global brings risk assessments to growing crypto lending vault sector

What happened: S&P Global Ratings launched a risk assessment framework for digital asset lending vaults, evaluating them across six risk categories including credit quality, liquidity mismatch, curator, blockchain, protocol, and security and governance risk. Key numbers: Vault deposits reached about $10 billion in September, Why it matters: S&P said the assessments aim to give investors more transparency on risks in a sector it says has many points of failure. The framework does not constitute credit ratings or evaluate yields, and S&P has not identified which vaults will be assessed first.

S&P Global Ratings launched a risk assessment framework for digital asset lending vaults, evaluating them across six risk categories including credit quality, liquidity mismatch, curator, blockchain, protocol, and security and governance risk.

S&P said the assessments aim to give investors more transparency on risks in a sector it says has many points of failure. The framework does not constitute credit ratings or evaluate yields, and S&P has not identified which vaults will be assessed first.