Moody’s Assigns B3 Rating to Sky Protocol as Institutional Demand for USDS Rises

Moody’s Ratings has given Sky Protocol a B3 issuer rating with a stable outlook, the first time the agency has rated a stablecoin protocol. Sky runs the USDS stablecoin, and its capital allocators use USDS liquidity across a range of strategies. The protocol says the rating shows growing institutional recognition of its credit profile while it builds reserves and strengthens its capital position. Greg Feibus, global head of capital markets at Sky Frontier Foundation, said independent ratings let institutions judge Sky through frameworks they already use.

Sky Rated by Both Moody’s and S&P

Sky says it is now the only stablecoin protocol formally rated by both Moody’s and S&P. In August 2025, S&P gave it a B- rating, pointing to depositor concentration, centralized governance and thin capital buffers.

Galaxy and Standard Chartered Boost USDS Institutional Interest

Last month, Galaxy placed $100 million of sUSDS into its corporate treasury, approved it as collateral across its institutional trading arm and bought an undisclosed amount of SKY. Feibus linked rising institutional attention to the S&P rating. Standard Chartered also said USDS operations, staking rewards and buybacks could lift income for token holders fivefold by 2028.