Sky Protocol receives first stablecoin protocol rating from Moody's, with about $10 billion in managed assets but only $90 million in equity.

BlockBeats news, October 8: The decentralized finance (DeFi) protocol Sky Protocol has been assigned a B3 long-term counterparty risk rating by 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 held approximately $90 million in tangible common equity, corresponding to about $10 billion in tangible assets under management. Moody's described its capital position as a "significant credit weakness." Sky Protocol, formerly known as MakerDAO, is responsible for managing the US dollar-pegged USDS and DAI.

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-backed loans. Its rating is also constrained by low capital adequacy, confidence-sensitive stablecoin liabilities, and risks related to its DAO structure. (Bitcoin.com News)