[DigitalToday reporter Chi-gyu Hwang] Moody's has assigned a B3 issuer credit rating to Sky Protocol, which operates the USDS stablecoin, The Block reported on Tuesday. The outlook is stable. This is the first time Moody's has issued a rating for a stablecoin protocol.

Sky stressed that the rating shows growing recognition among institutions of its creditworthiness, the report said. It also highlighted that Sky is the only stablecoin protocol to have received official ratings from both Moody's and S&P.

Sky is currently building reserves and working to improve its capital position.

Earlier, S&P assigned Sky a B- rating in August 2025. At the time, S&P cited concentration among specific depositors, a centralized operating structure and insufficient capital buffers.

Institutional interest in USDS is also growing. Galaxy added $100 million worth of sUSDS to its corporate assets last month. It enabled sUSDS to be used as collateral across its institutional trading business and also bought an undisclosed amount of SKY tokens. Standard Chartered recently said returns for SKY holders could rise fivefold by 2028, citing the USDS business, staking rewards and token purchases.

Greg Fibers (그렉 파이버스), head of capital markets at the Sky Frontier Foundation, said: "With an independent credit rating, institutional investors can evaluate Sky using the standards they already use in global markets."