• Moody’s Corp., an integrated risk assessment firm, will start looking at how it can ascertain the risk and health of stablecoins.
• Moody’s scoring system will have an analysis of up to 20 stablecoins, which be based on the quality of attestations on their reserves.
• The score from Moody’s would not be equivalent to an official credit rating.
Moody’s Corp., an integrated risk assessment firm, is looking into ways to assess the risk and health of stablecoins. In order to do this, they are planning to develop a scoring system that will analyze up to 20 stablecoins. This system will take into account the quality of attestations on their reserves. This means that the score that Moody’s provides would not be equivalent to an official credit rating.
The need for a system like this has been spurred on by the growing pressure from governments and regulators around the world. With this system, Moody’s hopes to provide investors with a better understanding of the risk associated with stablecoins.
Moody’s Investors Service, a branch of the company, specializes in providing credit ratings for businesses across various industries. While the company does provide credit ratings for publicly traded crypto companies, they have not commented on their plans for the stablecoin scoring system.
The plans for this system are still in an early phase, but it is expected to provide investors with more information about the risk associated with stablecoins. This could potentially lead to more investment in stablecoins and other cryptocurrencies. It also could potentially lead to more regulations and scrutiny of the cryptocurrency industry.
Overall, Moody’s plans to develop a scoring system for stablecoins is an important step in the evolution of the cryptocurrency industry. It will provide investors with more information and could lead to more regulations and scrutiny of the industry.