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Moody's is reportedly working on a scoring system for stablecoins that will include an analysis of up to 20 stablecoins based on the quality of attestations on the reserves backing them. The project is still in early stages and apparently won't represent an official credit rating.

"Tokenized funds - investment funds in which the fund units are tokenized and represented on distributed ledger technology (DLT)1 - have begun to emerge as digital investors seek ways to invest in asset classes, such as government bonds, that have become more attractive after recent interest rate hikes. Although the funds come with inherent risks and require managers to have technological expertise, the growing adoption of tokenized funds signals untapped market potential." (Moody's)

Rating agency Moody's has warned of several risks of private, centralized blockchains, inclusing that consensus mechanisms in private chains may not be as strong as those seen in public chains, or may be absent altogether.

Moody's warns that reliance on retrocession capital is growing but that it considers increased reliance on retrocession to sustain a normal reinsurance underwriting business to be risky and weaken the capital quality of those dependent on it for support.

There have been 609 depegs among large cap fiat-backed stablecoins so far this year, according to Moody's Analytics. Depegs are defined by the price of stablecoins fluctuating by more than three percent in a day against their fiat currency peg. Among a total of 1,914 depegs up to mid-September 2023, large cap stablecoins represented 609 depegs. By comparison, in 2022, there were 707 large cap depegs (including the top five stablecoins by market cap, including Ethereum blockchain's DAI) and a total of 2,847 depegs.

Moody's Investors Service has downgraded the entire US banking sector following the events around Silicon Valley Bank, Signature Bank, and Silvergate Bank. "While these three banks were unique in their focus on crypto and venture capital/private equity - areas of non-bank finance that grew quickly during easy monetary policy - it is increasingly evident that other US banks are also facing ALM strains... Some US banks also have demonstrated weak governance and oversight of ALM risk."