Moody’s has assigned Sky Protocol a B3 long-term counterparty risk rating with a stable outlook, marking the first time the ratings agency has rated a stablecoin protocol. The assessment covers a DeFi issuer formerly known as MakerDAO, which manages the dollar-pegged USDS and DAI stablecoins. According to Moody’s, Sky Protocol held about $90 million in tangible common equity against roughly $10 billion in tangible managed assets as of September, a capital profile the agency described as a “significant credit weakness.”
Moody’s said around 45% to 50% of Sky Protocol’s assets are held in stablecoins and tokenized money market funds, while another roughly 25% consists of crypto-backed loans. The rating was also constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks tied to the protocol’s DAO structure. The development was reported by Bitcoin.com News and cited by BlockBeats on Oct. 8.
Sky Protocol has received a B3 long-term counterparty risk rating from Moody’s, with a stable outlook, in what the agency said is its first rating for a stablecoin protocol.
Moody’s said that as of September, Sky Protocol held about $90 million in tangible common equity against roughly $10 billion in tangible managed assets. It 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-backed loans.
The rating was constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks related to the DAO structure, according to Moody’s.
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