Correlation between TradFi and DeFi

Follow along as Valkyrie's Head of Portfolio Management, Bill Cannon, highlights a notable "byte" from the markets each week.

This week, DeFi platform, Compound Prime, received an accredited agency rating of B- from Standard & Poor's, with a stable outlook, the first of its kind for a DeFi entity.

Bill's Byte:

Correlations between the traditional (TradFi) and decentralized (DeFi) finance worlds are always sought as they provide explanations on how the DeFi world behaves in a manner TradFi folks can understand. This week, DeFi platform, Compound Prime, received an accredited agency rating of B- from Standard & Poor's, with a stable outlook, the first of its kind for a DeFi entity. While traditional folks can balk at the low rating usually held for high yield bonds, the accomplishment of receiving a rating is noteworthy. Compound Prime's general manager, Reid Cuming, described the forward step where "DeFi can be measured, weighed and incorporated into more traditional financial risk methodologies, and additionally, also understood by traditional finance". Please take a moment to watch the video presented in the article as it provides an efficient and introductory summary on DeFi.