12 October 2026
Moody's Assigns First Stablecoin Rating to Sky Protocol with B3 Grade
In a significant move for the decentralized finance (DeFi) sector, Moody's has assigned its inaugural stablecoin rating to Sky Protocol, granting it a B3 long-term counterparty risk rating with a stable outlook.
As of September, Sky Protocol, formerly known as MakerDAO, reported approximately $90 million in tangible common equity against a staggering $10 billion in managed assets. This disparity has raised concerns, with Moody's identifying a "material credit weakness" in the protocol's financial structure.
Moody's report acknowledged Sky's low historical credit losses and solid profitability relative to its risk profile. However, the agency pointed out that the protocol's thin capitalization and reliance on confidence-sensitive stablecoin liabilities significantly impact its creditworthiness.
Sky Protocol's governance aims to increase its tangible common equity to $150 million over the medium term. Moody's indicated that an upgrade in the rating could be possible if the capital ratio exceeds 2.5%, while maintaining steady profitability and liquidity.
The credit rating agency's assessment underscores the evolving relationship between traditional financial metrics and the burgeoning DeFi landscape, marking a pivotal moment for stablecoins as they gain recognition from established financial institutions.
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