Sky Protocol, a decentralized finance protocol formerly known as MakerDAO, has received a B3 long-term counterparty risk rating from Moody’s with a stable outlook, according to ChainCatcher. Moody’s said this is the first time it has rated a stablecoin protocol.
As of September, Sky Protocol held about $90 million in tangible common equity against roughly $10 billion in tangible managed assets. Moody’s described the protocol’s capital position as a “significant credit weakness.”
The agency said around 45% to 50% of Sky Protocol’s assets are made up of stablecoins and tokenized money market funds, while another roughly 25% consists of crypto-backed loans. Sky Protocol manages the dollar-pegged USDS and DAI stablecoins.
Moody’s also said the rating is constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks tied to the protocol’s DAO structure.
Sky Protocol, a decentralized finance protocol formerly known as MakerDAO, has received a B3 long-term counterparty risk rating from Moody’s with a stable outlook, according to ChainCatcher.
Moody’s said the move marks its first rating of a stablecoin protocol. As of September, Sky Protocol held about $90 million in tangible common equity against roughly $10 billion in tangible managed assets. The agency described the protocol’s capital position as a “significant credit weakness.”
Sky Protocol manages the dollar-pegged USDS and DAI stablecoins. Moody’s said about 45% to 50% of the protocol’s assets consist of stablecoins and tokenized money market funds, while another roughly 25% is made up of crypto-backed loans.
The rating is also constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks related to the DAO structure, Moody’s said.
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