Moody’s gives Sky Protocol B3 rating as institutional interest in USDS grows

Moody’s Ratings assigned Sky Protocol a B3 issuer rating with a stable outlook, marking the first rating the agency has issued to a stablecoin protocol. Sky operates the USDS stablecoin, with the protocol's capital allocators accessing USDS liquidity and deploying it across diversified strategies.

Sky said the rating reflects growing institutional recognition of its credit profile as it works to build its reserves and improve its capital position.

"The value of independent credit ratings is that they allow institutional investors to assess Sky through frameworks they already use across global markets," said Greg Feibus, Global Head of Capital Markets, Sky Frontier Foundation. "Having multiple independent assessments gives institutional investors a clearer and more comparable view of Sky's credit profile."

Sky is currently the only stablecoin protocol formally rated by both Moody’s and S&P, the firm said. In August 2025, S&P said its B- rating reflected depositor concentration, centralized governance and weak capital buffers.

Last month, Galaxy added $100 million of sUSDS to its corporate treasury, approved sUSDS as collateral across its institutional trading business and bought an undisclosed amount of SKY. Feibus attributed increased institutional interest to the S&P rating. Standard Chartered recently said that Sky's USDS business, staking rewards and buybacks could lift income to token holders fivefold by 2028.

"We recognize the considerations Moody's identified and remain focused on supporting efforts to raise the level of Sky Reserves," Feibus said in Wednesday's release.