Credit rating industry also involved in cryptocurrency? Bloomberg: Moody’s is developing a “stablecoin rating system”

“Bloomberg” quoted sources as saying that Moody’s, an international credit rating company, is developing a stablecoin rating system. The function is to give each stablecoin issuer a risk level. Initially, it will evaluate the potential risks and reserve proof quality of 20 stablecoins. , for investors’ reference.

In general, proofs of reserves for stablecoins are usually published on a monthly or quarterly basis and are certified by third-party auditing firms. For example, after Tether reached a settlement with the Office of the Attorney General of New York , it was required to provide quarterly reports, which must detail the composition of USDT’s reserve funds.

The project is still in its infancy, but Moody’s would not consider it an official credit rating, the people familiar with the matter said on condition of anonymity. Moody’s declined to comment on the news.

However, analysts at MICA Research, a cryptocurrency research team, are curious whether Moody’s stablecoin rating system will follow the original business model.

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The reason is that the revenue of the credit rating industry is to charge the company for rating and endorse its financial status to assist the company to obtain a lower interest rate for bank loans, or to have a better price when issuing corporate bonds. However, analysts pointed out that stablecoin merchants do not issue bonds, so they cannot apply the traditional business model of credit rating agencies.

After the UST decoupling incident last year, governments around the world have adopted stricter regulatory measures for stablecoins. For example, Canada has banned USDT from being listed on exchanges, and Coinbase has also delisted USDT and completely switched to USDC. In addition, the Basel Financial Commission also launched The cryptocurrency regulatory framework hopes to bring cryptocurrency into the financial regulatory system.