About $90 million of equity sits beneath roughly $10 billion of assets at Sky, the protocol behind the USDS stablecoin. That is a ratio of about 0.9 percent, and it is the centre of the first credit rating Moody’s has given any stablecoin protocol.
The rating, announced on Wednesday, is B3 with a stable outlook. That is deep in speculative grade, and level with the B- that S&P assigned Sky in August 2025.
Sky, formerly MakerDAO, presented it as a milestone. Greg Feibus of the Sky Frontier Foundation said independent ratings let institutional investors assess the protocol through frameworks they already use elsewhere.
Reports of the Moody’s assessment are less comfortable. The agency called the thin capital a material credit weakness. It also flagged the lack of audited financial statements, the absence of formal incorporation and the risks of governance by a decentralised organisation.
It gave credit for liquid assets, profitability and a low record of credit losses.
The thresholds are specific. A capital ratio above 2.5 percent could earn an upgrade, and a fall below 0.5 percent could trigger a downgrade.
The rating matters because it is how conventional money decides what it may hold. The Block notes that Galaxy recently put $100 million of its treasury into sUSDS, the yield-bearing version of the token, and accepts it as collateral. Sky says its long-term aim is investment grade.
The part to watch is the distance. On the reported figures Sky is nearer the downgrade floor than the upgrade line, and reaching 2.5 percent would mean almost tripling its capital or shrinking its book. Sky has said it is committed to raising reserves. It has not said by when.
