Moody’s Assigns Sky Protocol B3 Rating, Its First Stablecoin-Protocol Assessment

Moody’s assigned Sky Protocol a B3 credit rating with a stable outlook, making it the first stablecoin protocol to receive a rating from the agency and highlighting rising institutional scrutiny of stablecoin risk.

Sky is now the only stablecoin protocol with formal ratings from both Moody’s and S&P Global Ratings. S&P assigned the protocol a B- rating through a separate process.

Moody’s identified the level of Sky Reserves as a central factor in its assessment. Sky’s governance committee has strengthened its financial-management function and adopted a Stage 2 buyback and reserves framework that retains part of the protocol’s net income.

The retained income is intended to build reserves toward a minimum target established by governance.