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S&P Global launches risk framework for crypto lending vaults

The framework covers six risk categories, including protocol and security, as deposits in the vault sector reach about $10 billion.

Reported · Written up by our desk · Regulation

S&P Global Ratings has launched a new risk assessment framework for digital asset lending vaults as onchain lending products gain traction, according to Cointelegraph.

The framework evaluates vaults across six risk areas: portfolio credit quality risk, liquidity mismatch risk, curator risk, blockchain risk, protocol risk, and vault security and governance risk.

S&P Global said the assessments are intended to evaluate the risk of losses to investors in lending vaults, but they are not credit ratings and do not evaluate yields.

Cointelegraph also reports that the framework was announced as deposits in the crypto lending vault sector climb to about $10 billion.

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