Sky Protocol has become the first stablecoin protocol to receive a rating from Moody’s, managing approximately $10 billion in assets while holding just $90 million in equity.
60 minutes ago
Decentralized finance (DeFi) protocol Sky Protocol has been assigned a B3 long-term counterparty risk rating by credit rating agency Moody’s, with a stable outlook. This marks Moody’s first ever rating of a stablecoin protocol. As of September, Sky Protocol held roughly $90 million in tangible common equity, corresponding to approximately $100 billion in tangible assets under management. Moody’s labeled its capital position a “major credit weakness”. Formerly known as MakerDAO, Sky Protocol manages the USDS and DAI stablecoins, both pegged to the U.S. dollar. Moody’s noted that around 45% to 50% of Sky Protocol’s assets consist of stablecoins and tokenized money market funds, with an additional ~25% being crypto-collateralized loans. Its rating is also constrained by risks related to low capital adequacy, confidence-sensitive stablecoin liabilities, and its DAO structure. (Bitcoin.com News)
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