Moody’s To Develop Scoring System for Stablecoins

Rating agency Moody’s will be developing a scoring system for stablecoins. According to Bloomberg, it will be based on the quality of stablecoins’ reserves attestations.

The initiative currently appears to be in the early stages of development. Meanwhile, the experts are expected to calculate the scores for 20 stablecoins. As for the official rating commonly accepted by the agency, it will not be considered.

Such interest in stablecoins at Moody’s was explained by growing attention to the sector from regulators and investors.

In addition, Bloomberg recalled the $41 million fine that Tether Limited paid in October 2021 for “untrue or misleading statements” stating the USDT was fully backed by fiat currency.

Experts have previously pointed to a decrease in the market share of algorithmic stablecoins from 12.4% in April 2022 to 1.71%. The above was triggered by the collapse of Terra USD causing increased attention from regulators globally.

It is worth mentioning that Chairman of Singapore’s central bank Tharman Shanmugaratnam focused his attention on required regulatory frameworks for stablecoins.