Moody’s Ratings has assigned Sky Protocol a B3 issuer rating with a stable outlook, marking a first for the ratings agency. The assessment gives institutional investors another traditional credit benchmark for evaluating the protocol behind the USDS stablecoin. Significantly, Sky says it now stands as the only stablecoin protocol carrying formal ratings from both Moody’s and S&P.
Institutional Adoption Expands
The rating arrives as major financial firms increase their exposure to Sky’s ecosystem. Last month, Galaxy added $100 million of sUSDS to its corporate treasury.
Additionally, Galaxy approved sUSDS as collateral for its institutional trading operations. The company also purchased an undisclosed amount of SKY tokens.
Moreover, Standard Chartered recently highlighted potential growth across Sky’s USDS operations, staking rewards, and token buybacks. The bank expects these areas could substantially increase income flowing toward token holders by 2028.
Sky Focuses on Stronger Reserves
However, Sky still faces several credit challenges as institutional adoption develops. S&P previously highlighted depositor concentration, centralized governance, and limited capital buffers when assigning its B- rating.
Consequently, Sky continues working to strengthen reserves and improve its broader capital position. Stronger financial buffers could support its credit profile as USDS attracts more institutional demand.
Related: CFTC Clears Path for US Exchanges to Launch Perpetual Futures
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
