S&P Global Ratings has released a comprehensive credit FAQ that outlines how it integrates blockchain-specific risks into its established fixed-income fund rating methodologies. This development comes as tokenised money market funds have seen their assets under management exceed $15 billion globally, according to data from RWA.xyz. Currently, S&P rates three tokenised funds: the OpenEden TBILL Fund, the Janus Henderson Anemoy Treasury Fund, and the Delta Wellington Ultra Short Treasury On-Chain Fund. The document serves primarily to clarify the agency's methodology rather than announce specific ratings, although it references a 'AAAm' Principal Stability Fund Rating for the Franklin OnChain U.S. Government Money Fund without confirming it outright.
The framework extends S&P's standard fund-rating scales to incorporate unique risks associated with distributed ledger technology. Key on-chain risk factors include the integrity of smart contracts, the accuracy of oracles, and the security standards of wallets used in transactions. The agency has indicated that it will consider weighted average maturity adjustments for funds that are newly launched or have limited operating histories, a common scenario for tokenised financial vehicles. Additionally, S&P places significant emphasis on cybersecurity measures, evaluating the deployment of multi-signature wallets, multi-party computation for private key management, and the overall reputation of auditors reviewing smart contract code.
The FAQ also highlights the impact of U.S. legislative developments on the stablecoin landscape, which is critical for cash-leg settlement in tokenised funds. The GENIUS Act, enacted in 2025, establishes a federal licensing regime for payment stablecoins, while the CLARITY Act, currently under Senate debate, aims to clarify the legal status of tokenised instruments. In the European Union, the Markets in Crypto-Assets regulation, effective from 2024, provides essential legal clarity for stablecoin issuers and intermediaries. S&P's formal engagement in this sector signals to institutional investors that they can begin to assess tokenised assets systematically, a crucial step toward broader allocation.
As tokenised money market funds currently represent only about 0.30% of the total U.S. money market industry, the establishment of a credible ratings framework and the anticipated regulatory clarity could significantly enhance institutional participation. Future developments to monitor include the passage of the CLARITY Act, the first ratings issued under the GENIUS Act's reserve requirements, and whether more fund managers will pursue formal ratings for their tokenised offerings, following the lead of industry giants like BlackRock and Franklin Templeton.
The framework extends S&P's standard fund-rating scales to incorporate unique risks associated with distributed ledger technology. Key on-chain risk factors include the integrity of smart contracts, the accuracy of oracles, and the security standards of wallets used in transactions. The agency has indicated that it will consider weighted average maturity adjustments for funds that are newly launched or have limited operating histories, a common scenario for tokenised financial vehicles. Additionally, S&P places significant emphasis on cybersecurity measures, evaluating the deployment of multi-signature wallets, multi-party computation for private key management, and the overall reputation of auditors reviewing smart contract code.
The FAQ also highlights the impact of U.S. legislative developments on the stablecoin landscape, which is critical for cash-leg settlement in tokenised funds. The GENIUS Act, enacted in 2025, establishes a federal licensing regime for payment stablecoins, while the CLARITY Act, currently under Senate debate, aims to clarify the legal status of tokenised instruments. In the European Union, the Markets in Crypto-Assets regulation, effective from 2024, provides essential legal clarity for stablecoin issuers and intermediaries. S&P's formal engagement in this sector signals to institutional investors that they can begin to assess tokenised assets systematically, a crucial step toward broader allocation.
As tokenised money market funds currently represent only about 0.30% of the total U.S. money market industry, the establishment of a credible ratings framework and the anticipated regulatory clarity could significantly enhance institutional participation. Future developments to monitor include the passage of the CLARITY Act, the first ratings issued under the GENIUS Act's reserve requirements, and whether more fund managers will pursue formal ratings for their tokenised offerings, following the lead of industry giants like BlackRock and Franklin Templeton.
Source: The Fintech Times
