One in all three largest credit standing businesses is reportedly engaged on a scoring system for cryptocurrencies pegged to different belongings, such because the US greenback, gold or different digital belongings.
In accordance with a brand new report from Bloomberg, credit standing titan Moody’s is creating a system that may analyze as much as 20 stablecoins primarily based on the standard of the attestations on the reserves that they’re backed with.
Stablecoin issuers periodically publish reserve attestation stories licensed by third-party audit corporations that conduct an unbiased evaluation to make sure that every unit of stablecoin is sufficiently backed by collateral held in reserve.
Moody’s is creating the scoring system amid rising curiosity in stablecoins, spurring issues from regulators and traders, in keeping with the report.
In 2021, US authorities fined Tether, the issuer of the biggest stablecoin by market cap, for mendacity about its reserves.
The crash of the Terra ecosystem in Could 2022 was additionally linked to the collapse of its algorithmic stablecoin. The value of Terra (LUNA) plummeted after TerraUSD (UST) failed to keep up its peg to the US greenback.
An individual with information about Moody’s new stablecoin scoring system says the challenge remains to be within the early levels and won’t signify an official credit standing.
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