Moody's proposes a stablecoin rating framework centered on reserve quality

According to The Block, credit rating agency Moody's has proposed a new framework for assessing stablecoins. This framework will evaluate the creditworthiness of stablecoin debt and assign ratings to it. Moody's framework essentially means that two stablecoins claiming 1:1 backing with the US dollar, even if they are backed by the same assets, may receive different ratings due to the different assets used to support these stablecoins.

Moody's stated, "We will address market value considerations by estimating the market value risk of each qualifying reserve asset (depending on its type and maturity)." "The analysis will yield estimated interest rates applicable to the value of each asset. We also recommend considering the operational risk, liquidity risk, technological risk, and other factors of the stablecoin to arrive at the final rating."