Moody’s Stablecoin Rating Proposal Aims to Assess Liquidity Risk

Moody’s Ratings is set to adopt a new stablecoin rating system that could redefine how investors evaluate the $300 billion market.

The 116-year-old credit rating company has proposed a methodology to assign deposit ratings to stablecoins based on the quality of each token’s reserve assets, market value risk and operational safeguards. Moody’s published the proposal on Friday and plans to adopt it after considering public comments, which can be submitted through Jan. 29.

The proposal comes as stablecoins have seen growing usage and new regulatory regimes around the world. In July, the US passed the Genius Act, providing regulation for ...