Sky Protocol Gets Moody’s B3 Rating, Highlighting Thin Reserves
Moody’s assigned Sky Protocol a B3 long-term counterparty risk rating with a stable outlook on 7 October 2026, marking its first rating of a stablecoin protocol. Formerly MakerDAO, Sky manages the dollar-pegged USDS and DAI. S&P Global Ratings assigned Sky a B- rating earlier in October, making it the only stablecoin protocol rated by both agencies.
Neutral
For Sky Protocol, the ratings are a mixed signal rather than an immediate price catalyst. Recognition from Moody’s and S&P could improve institutional access and support confidence in the protocol over time. However, the B3 rating is speculative grade, and Moody’s identified thin capital as a significant weakness: Sky has roughly $90 million in equity against $10 billion to $11 billion in managed assets, a ratio below 1%. Reserves rose from about $50 million earlier in 2026 to an estimated $92 million by 17 September, partly supported by a governance-led buyback, but remain below the $150 million target. Assets include stablecoins, tokenised money-market funds and crypto-backed loans, while liabilities remain sensitive to confidence and the DAO structure adds governance risk. In the short term, traders may focus on reserve disclosures and any reaction in SKY or MKR, but the rating alone does not establish a directional price move. Longer term, a sustained capital ratio above 2.5%, with stable profitability, liquidity and asset risk, could support an upgrade and confidence; a ratio below 0.5%, repeated quarterly losses or weaker liquidity could prompt a downgrade and weigh on sentiment. USDS and DAI supply growing faster than reserves would also remain a risk to monitor.