Sky Frontier Foundation announced today that Moody’s Ratings has assigned Sky Protocol a B3 issuer rating with a stable outlook. It is the first rating Moody’s has issued on any stablecoin protocol. Following S&P Global Ratings’ corroborated B- rating in recent weeks, Sky Protocol is so far the only stablecoin protocol that has been formally rated by the major credit rating agencies.
Moody’s and S&P Global Ratings ran separate processes, with their own teams and their own criteria, and arrived at independent assessments of Sky Protocol’s credit profile. Two independent ratings allow institutional allocators to assess Sky Protocol using established credit-rating scales, a standard no other stablecoin protocol meets today.
Obtaining a formal credit rating is part of the wider strategy at Sky Protocol to grow Sky Reserves, and evidence that the protocol’s operations and governance processes have been subject to an in-depth review by an independent and objective assessor.
Moody’s identified the level of Sky Reserves as a central factor in its assessment, a view the Foundation shares. Sky Governance strengthened the protocol’s Treasury Management Function and moved to a Stage 2 buyback and reserves framework under which the protocol retains a portion of Net Protocol Revenue to build Sky Reserves toward a governance-set minimum target. Building those reserves takes time and remains a priority. Real-time metrics are publicly available at.
“We appreciate the rigor that Moody’s brought to its review of Sky Protocol and the independent assessment it has provided,” said Greg Feibus, Global Head of Capital Markets, Sky Frontier Foundation. “The value of independent credit ratings is that they allow institutional investors to assess Sky through frameworks they already use across global markets. Having multiple independent assessments gives institutional investors a clearer and more comparable view of Sky’s credit profile. We recognize the considerations Moody’s identified and remain focused on supporting efforts to raise the level of Sky Reserves.”
Both Moody’s and S&P Global have set out the factors that would support a higher credit-worthiness for Sky Protocol. Sky Governance and Sky Frontier Foundation are reviewing those factors, and the resulting next steps will be published as part of the roadmap in the near future. Meeting a higher capital ratio over time is a Sky Governance objective, and the protocol’s long-term ambition is an investment-grade rating.
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