Moody's Ratings assigned Sky Protocol a B3 issuer rating with a stable outlook Wednesday, marking the first time the agency has rated a stablecoin protocol. Sky operates the USDS (CRYPTO: $USDS) stablecoin, with the protocol's capital allocators deploying USDS liquidity across a range of strategies.
The rating makes Sky the only stablecoin protocol currently rated by both Moody's and S&P Global, according to the company. S&P assigned Sky a B- rating in August 2025, citing depositor concentration, centralized governance and weak capital buffers as risk factors.
Greg Feibus, global head of capital markets at the Sky Frontier Foundation, said independent ratings matter because they let institutional investors evaluate Sky through frameworks they already use across global markets. He added that Sky remains focused on strengthening its reserves, acknowledging the specific concerns Moody's flagged in its assessment.
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Institutional interest in the protocol has been building. Galaxy Digital (NASDAQ: $GLXY) added $100 million of sUSDS to its corporate treasury last month, approved the token as collateral across its institutional trading business, and purchased an undisclosed amount of SKY.
Feibus tied that move partly to the earlier S&P rating. Standard Chartered said separately last month that Sky's USDS business, staking rewards and buybacks could lift income to token holders fivefold by 2028.
