Moody’s proposes stablecoin ratings framework focused on reserve quality
Moody's has proposed a new framework to rate stablecoins based primarily on the credit quality and market value risk of their reserve assets.Summary
Credit ratings agency Moody's has proposed a new framework for evaluating and assigning ratings to stablecoin obligations, focusing heavily on the quality of the underlying reserve assets. The methodology involves first assessing the credit quality of each asset in the reserve pool using existing asset ratings and counterparty ratings. The second step addresses market value considerations by estimating the market value risk of each reserve asset, resulting in advance rates applied to their value. Furthermore, the framework will consider operational, liquidity, and technology risks. This means two USD-pegged tokens with 1:1 backing could receive different ratings depending on their reserve composition. The proposal applies globally to stablecoins where reserve assets are effectively segregated, meaning they can only be used to satisfy stablecoin obligations, even in bankruptcy. Moody's is seeking market feedback on the proposed system until January 26, 2026. This development occurs as financial institutions increase their embrace of stablecoins, particularly following the passage of the U.S. GENIUS Act, which mandates issuers hold highly liquid reserves like U.S. Treasuries.
(Source：The Block)