S&P Global Ratings has introduced a new framework for grading the risks inside crypto lending vaults. It is called the Vault Risk Assessment, or VRA, and it was unveiled in Singapore on October 4, 2026.
The motivation is fairly direct. Andrew O’Neill, S&P Global’s analytical lead for digital assets, says recent DeFi exploits showed that risk parameters across the sector were loose.
What S&P is actually grading
Start with what a vault is. Picture a managed fixed-income fund, except the manager deploys pooled deposits into lending strategies that run on a blockchain. S&P itself draws that fund comparison.
Depositors hand over assets. A curator decides where those assets go. Smart contracts handle the plumbing.
The VRA splits the risk in that arrangement into six separate factors:
- Portfolio credit quality: how sound the underlying loans and assets are
- Liquidity mismatch: whether depositors could withdraw faster than the vault can unwind its positions
- Curator risk: the competence and conduct of whoever manages the strategy
- Blockchain risk: exposure to the network the vault runs on
- Protocol risk: exposure to the lending protocols the vault taps into
- Vault security and governance risk: how well the vault is secured and who controls changes to it
Each factor gets a letter grade with a “(v)” suffix attached. An AAA(v) score, for example, signals minimal relative risk of impairment.
That suffix carries real weight. S&P draws a clear line between the VRA and its standard credit ratings, so an AAA(v) vault should not be confused with an AAA-rated bond. It is a gauge of how likely depositors are to lose value relative to other vaults, not a traditional creditworthiness verdict.
Why now: a $10 billion market with loose guardrails
The timing tracks the money. Deposits in these vaults reached approximately $10 billion as of September 2026.
Two years earlier, in September 2024, the figure was $1.5 billion. That works out to roughly 6.7 times growth over the period.
O’Neill also flagged the permissionless nature of vaults as a distinct challenge. Traditional fund managers generally need approval before taking client money. In DeFi, anyone can spin up a vault and start accepting deposits, which makes independent evaluation more valuable and considerably harder to do.
A single letter grade would struggle to capture that complexity. Breaking the score into six components lets an investor see which part of the setup is shaky. A vault could hold excellent collateral and still have weak governance, and the VRA is designed to show both at once.
S&P’s growing digital asset portfolio
This is not S&P’s first venture into crypto. The firm previously issued the first credit rating of a DeFi protocol, assigned to Sky Protocol.
It has also rated a Bitcoin-backed structured finance deal involving Ledn. The VRA extends that work from individual protocols and transactions to the vaults that sit on top of them.
S&P is expected to publish its first VRAs for selected vaults in upcoming announcements. The firm has not disclosed which vaults will be assessed first or when those results will arrive.
Disclosure: This article was edited by Kaye Quema. For more information on how we create and review content, see our Editorial Policy.