Moody’s Ratings bestowed a B3 issuer rating with a stable outlook upon Sky Protocol, representing the initial rating the organization has ever granted to a stablecoin framework. Sky runs the USDS stablecoin, where the ecosystem’s capital allocators tap into USDS liquidity and allocate it across a variety of diversified approaches.
Sky stated that the rating demonstrates increasing institutional awareness of its creditworthiness as the entity strives to expand its reserves and strengthen its capital foundation.
“The benefit of objective credit ratings lies in their ability to let institutional participants evaluate Sky using evaluation methods they presently apply throughout international financial markets,” noted Greg Feibus, Global Head of Capital Markets for the Sky Frontier Foundation. “Securing numerous independent evaluations offers institutional buyers a more transparent and standardized perspective regarding Sky’s credit standing.”
Sky stands presently as the sole stablecoin project officially evaluated by both Moody’s and S&P, according to the organization. Back in August 2025, S&P indicated that its B- grade stemmed from depositor concentration, centralized decision-making, and insufficient capital reserves.
During the previous month, Galaxy allocated $100 million in sUSDS toward its corporate balance sheet, sanctioned sUSDS as margin across its institutional trading operations, and acquired an unannounced quantity of SKY tokens. Feibus pointed to the prior S&P evaluation as a driver for heightened institutional participation. Standard Chartered recently noted that Sky’s USDS operations, staking yields, and token repurchases could multiply earnings for token holders by five times by the year 2028.
“We take note of the factors highlighted by Moody’s and stay dedicated to backing initiatives designed to boost the volume of Sky Reserves,” Feibus remarked in a publication on Wednesday.
Originally published at https://www.theblock.co/news/business/2026-10-07-moodys-sky-protocol-b3-rating-first-stablecoin-protocol-417931.
