Credit-ratings giant Moody’s is working on a scoring system for stablecoins as the asset class keeps growing. The system will include an analysis of up to 20 stablecoins based on the quality of attestations on the reserves backing them.
That’s according to Bloomberg, which cites people familiar with the firm’s plans in a report that details the project is still in its early stages and won’t represent an official credit rating.
Moody’s provides credit ratings for publicly traded cryptocurrency companies like Coinbase, while its research arm issues broader analysis reports on the space.
Recently, there has been increased scrutiny of stablecoin reserve attestations as the use of these tokens has grown. This has led to questions about the assets backing the largest stablecoin, Tether’s USDT. In 2021, Tether, which has $67 billion of dollar-pegged stablecoins in circulation, was fined by US authorities for lying about its reserves.
CryptoCompare’s latest stablecoins report details that in January, Tether’s USDT reached its highest market share in the stablecoin market since October 2021. The market share of USDT rose by 0.82% to $66.7 billion, increasing its overall market share to 48.7%. Out of all stablecoins, only USD Coin, Binance USD, and Gemini Dollar experienced a decline in market capitalization during that month.
The overall market capitalization of the stablecoin market dropped by 0.62% this month to $137 billion, which is the lowest level it has seen since September 2021. This marks the tenth consecutive month of decline in market capitalization for stablecoins. Trading volume, however, increased 9.46% to $397 billion.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/jan/27/