Sky Protocol received Moody's first stablecoin protocol rating: managing assets of approximately 10 billion USD but with equity of only 90 million USD

The decentralized finance (DeFi) protocol Sky Protocol has been granted a B3 long-term counterparty risk rating by the credit rating agency Moody's, with a stable outlook. This is the first time Moody's has rated a stablecoin protocol.

As of September, Sky Protocol holds approximately $90 million in tangible common equity, corresponding to about $10 billion in tangible managed assets. Moody's describes its capital position as a "significant credit weakness." Sky Protocol, formerly known as MakerDAO, is responsible for managing the USDS and DAI, which are pegged to the US dollar. Moody's noted that approximately 45% to 50% of Sky Protocol's assets consist of stablecoins and tokenized money market funds, with another approximately 25% in cryptocurrency collateralized loans. Its rating is also constrained by low capital adequacy ratios, confidence-sensitive stablecoin liabilities, and risks associated with the DAO structure.