- Moody’s hopes to build a scoring system for stablecoins as the market grows amid increased regulatory attention.
- This system provides a rating system for top stablecoins based on the quality of their reserve certificates.
- The major stablecoins by market cap today are Tether (USDT), USD Coin (USD), and Binance USD (BUSD).
Moody’s Corporation, one of the world’s leading credit rating agencies, is reportedly developing a scoring system for the stablecoin industry.
Ah report Note that Moody’s solution is not an official credit rating, according to Bloomberg, citing sources familiar with the development. However, the integrated risk assessment giant is about to offer a platform that provides a scoring system based on comprehensive analysis of the world’s largest stablecoins.
Moody’s has already made its mark in the crypto space, with leading digital asset companies such as Coinbase receiving credit ratings from US-based providers. The credit evaluator also has a research department that provides access to analytical reports touching on various issues in the crypto industry.
According to the report, the new system will provide access to valuations of up to 20 stablecoins and the company will utilize the latest technology to evaluate asset-backed tokens. Among the most important metrics to consider are the reserve and proof quality of each stablecoin.
People familiar with the project say its development is still in its early stages.
Moody’s Acquires Leading Stablecoin
Stablecoins allow holders to participate in crypto markets, including the transfer of value, without being overly exposed to the potentially high volatility characteristics of cryptocurrencies such as Bitcoin and Ethereum. However, it is not without risks, especially liquidity and manipulability.
It is these issues that have brought stablecoins to increasing regulatory attention, especially reserves, due to the need to maintain a one-to-one backing to the issued tokens. increase.
Various issuers have attestation reports to ensure that indeed all their stablecoin tokens are backed. But regulators want to streamline the sector to better protect investors.As coin journal As recently reported, Bitwise Chief Compliance Officer Kathrine Dowling believes US stablecoin regulation will be ready by the end of 2023.
Top Stablecoins Today
USD-pegged Tether (USDT) is the largest stablecoin with $67.3 billion worth of tokens in circulation. Another dollar-backed stablecoin, USD Coin (USDC), has $43.2 billion of coins in circulation. Meanwhile, Binance USD (BUSD) is his third largest, with $15.4 billion worth of tokens in circulation.
according to data According to CoinGecko, the market cap of stablecoins is now over $137 billion. As of January 27, 2023 at 13:20 PM ET, he has traded over $68 billion in the last 24 hours.