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Moody's Proposes New Credit Rating System for Stablecoins

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Moody’s proposed a new credit rating system for stablecoins, focusing on reserve quality, maturity risk, and counterparties—beyond just the dollar peg. The stablecoin regulation framework demands strict reserve segregation to protect holders during issuer failure. The plan supports evolving laws like the GENIUS Act and opens public feedback until January 26, 2026. Moody’s will rate obligations and reserves, using a cross-sector approach. Two U.S. dollar stablecoins with full backing may get different ratings based on reserve makeup. Tether, under past reserve scrutiny, recently reported $135 billion in U.S. Treasuries. The move also aligns with efforts in Countering the Financing of Terrorism.
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