Moody's gives Sky a B3 rating, its first for a stablecoin protocol

A second major credit rating agency has put a formal grade on a stablecoin protocol. Moody's Ratings assigned Sky Protocol, which operates the USDS stablecoin, a B3 issuer rating with a stable outlook, the Sky Frontier Foundation said in a statement on October 7. The foundation said it is the first rating Moody's has issued on any stablecoin protocol.

The announcement came from the foundation, and the details here are from its statement and from The Block's report.

S&P Global Ratings already rates the protocol B-. S&P assigned that grade in August 2025, citing depositor concentration, centralized governance and weak capital buffers, The Block reported. The foundation said Sky is so far the only stablecoin protocol formally rated by the major credit rating agencies.

Moody's identified the level of Sky Reserves as a central factor in its assessment, the foundation said, adding that it shares that view. "We recognize the considerations Moody's identified and remain focused on supporting efforts to raise the level of Sky Reserves," said Greg Feibus, the foundation's global head of capital markets, as quoted by The Block.

Ratings matter because they let institutions judge Sky with the frameworks they already use, Feibus said. The Block reported that Galaxy added $100 million of sUSDS, Sky's savings token, to its corporate treasury in September.

Both ratings sit below investment grade, which the foundation called the protocol's long-term ambition.