Moody's proposes a new stablecoin rating framework, focusing on reserve asset quality

【Moody’s Proposes New Stablecoin Rating Framework Focused on Reserve Asset Quality】Moody’s has released a new proposed framework for stablecoin ratings, emphasizing the credit quality of reserve assets, market value risk, and operational risk assessments. This framework implies that even two stablecoins both pegged at “1:1 USD” could have different ratings depending on the types of reserve assets backing them. Moody’s states that the rating process will be conducted in two steps: first, assessing the credit quality of various assets in the reserve pool and the related counterparties; second, estimating market value risk based on asset categories and maturities, and setting “advance rates” for different assets. Factors such as operational, liquidity, and technological risks of stablecoins will also be incorporated. The report notes that issuers must effectively segregate stablecoin reserve assets from other business activities, ensuring these assets are only used for redemption in the event of issuer bankruptcy.