As automotive gradually enters the space, S&P Global announced last week that it has entered into an agreement to acquire OpenZeppelin, which provides security for onchain finance.

Executives highlighted the transaction complements S&P Global’s risk assessment and ecosystem development capabilities in digital asset markets, enhancing its ability to create the next generation of onchain security assessments, benchmarks, and deliver essential intelligence as capital markets transition onchain.

According to a news release, financial terms of the transaction were not disclosed. S&P Global said the transaction is subject to closing conditions and is not expected to have a material impact on its financial results.

Founded in 2015, OpenZeppelin combines leading onchain security assessments and secure development services with one of the world’s leading open-source smart contract libraries.

OpenZeppelin contracts underpins more than $37 trillion in value transferred, including the vast majority of the largest stablecoins and tokenized funds, and the company has conducted more than 900 security engagements for the protocols and institutions defining digital asset markets.

Management noted OpenZeppelin’s technology and expertise are trusted by decentralized finance (DeFi) and traditional financial institutions to secure the onchain infrastructure that increasingly underpins digital assets.

“Our digital assets strategy centers on bringing trusted data, benchmarks and transparent risk assessment to markets as they move onchain,” S&P Global Ratings president Yann Le Pallec said in the news release.

“As digital assets and tokenized markets continue to mature, OpenZeppelin’s technology and expertise will complement our smart contract and onchain technology risk assessment capabilities, giving traditional financial institutions and DeFi-native companies alike the confidence to build and transact in this new environment,” Le Pallec continued.

The acquisition will expand S&P Global’s risk assessment capabilities into the onchain technology-risk layer and as an extension to onchain financial products, while S&P Global’s trusted brand, deep institutional relationships, and global distribution accelerate OpenZeppelin’s reach into traditional finance.

“OpenZeppelin’s standards, technology, and expertise already power the infrastructure behind the world’s leading stablecoins, tokenized funds, DeFi protocols, and onchain markets,” OpenZeppelin CEO Demian Brener said in the news release.

“With S&P Global, that foundation reaches a broader set of organizations entering this market, as well as the blockchain networks and DeFi protocols gaining institutional adoption,” Brener added.

OpenZeppelin will continue to operate as its own business unit under the OpenZeppelin name. Brener will continue to lead the business, reporting to Le Pallec.

Jefferies is serving as financial advisor to S&P Global. Clifford Chance is acting as S&P Global’s legal advisor.

FT Partners is serving as exclusive financial and strategic advisor to OpenZeppelin, and Cooley is acting as OpenZeppelin’s legal advisor.