Sky Protocol, the DeFi protocol formerly known as MakerDAO, has received a B3 long-term counterparty risk rating from Moody’s with a stable outlook, marking the agency’s first rating for a stablecoin protocol. As of September, Sky Protocol held about $90 million in tangible common equity against roughly $10 billion in tangible managed assets, a capital position Moody’s described as a “significant credit weakness.” Moody’s said around 45% to 50% of the protocol’s assets consist of stablecoins and tokenized money market funds, while another roughly 25% is tied to crypto-collateralized lending. The rating is also constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks linked to its DAO structure. According to Moody’s, an upgrade could follow if the capital ratio rises to and remains above 2.5% while profitability, liquidity, and asset risk stay stable. A downgrade could result if the ratio falls below 0.5%, if the protocol posts losses for consecutive quarters, or if liquidity weakens.
Sky Protocol has received a B3 long-term counterparty risk rating from Moody’s, with a stable outlook, according to Odaily, citing Bitcoin.com News. Moody’s said this is its first rating for 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.”
Sky Protocol, formerly MakerDAO, manages the dollar-pegged USDS and DAI stablecoins. Moody’s said about 45% to 50% of its assets are made up of stablecoins and tokenized money market funds, while another roughly 25% consists of crypto-collateralized loans.
The rating is constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks tied to the DAO structure. Moody’s said the rating could be upgraded if the capital ratio rises to and stays above 2.5%, while profitability, liquidity, and asset risk remain stable. It could be downgraded if the capital ratio drops below 0.5%, if the protocol records losses in consecutive quarters, or if liquidity deteriorates.
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