Major rating agency Moody's has created a new evaluation framework for stablecoins, clearly stating its stance to analyze credit risk based on factors such as redemption capability and the quality of reserve assets, rather than yield. Bloomberg reported this on the 18th.
The presentation of evaluation criteria could relatively highlight the positioning of major dollar-denominated stablecoins like USDT and USDC, while also potentially redefining the role of yen-denominated stablecoins in the Japanese market.
The framework for evaluating stablecoins presented by Moody's
Moody's announced a proposed credit rating framework for stablecoins last week. While traditional evaluations of crypto assets have tended to focus on price fluctuations and market liquidity, the company centers its evaluation on the question of whether it can be redeemed at face value at all times.
Specifically, it analyzes various elements such as the composition and liquidity of reserve assets, the operational risks of issuers, governance structures, and regulatory environments, designing the framework so that the most vulnerable factors influence the overall evaluation.
Algorithmic stablecoins are excluded, and the evaluation is limited strictly to credit risk. This can be interpreted as a clear stance to position stablecoins not as speculative targets but as infrastructure for payments and fund transfers.
Evaluation criteria for USD-denominated stablecoins and market reactions
This evaluation framework holds significant meaning for major dollar-denominated stablecoins like USDT and USDC. These are already widely used as base assets in international remittances, cryptocurrency trading, and decentralized finance (DeFi), with financial institutions and businesses increasingly aware of counterparty risks.
Moody's framework attempts to visualize credit risk by third parties against the backdrop of such usage realities. If evaluation results are published, they could influence the trading decisions of exchanges and the choice of payment methods by corporations.
In the Japanese market, dollar-denominated stablecoins are also expanding their use, primarily in overseas transactions and cross-border payments, and scenarios are anticipated where the presence or absence of credit evaluations becomes a practical selection criterion.
The position of yen-denominated stablecoins and challenges in the Japanese market
On the other hand, in Japan, yen-denominated stablecoins (JPYC) are advancing regulatory compliance, but their role in the market differs from that of dollar-denominated stablecoins. Currently, yen-pegged types circulating in Japan focus on domestic use and cater to the payment needs of businesses wanting to avoid currency risk.
Domestic reports indicate that the growth strategy for yen-denominated stablecoins is not aimed at international competition, but rather focuses on domestic transactions and inter-corporate payments. Although Moody's evaluation framework is not immediately applicable to such yen-denominated assets, it suggests that the transparency of reserve assets and the reliability of the redemption process may become subjects of international evaluation in the future.
Towards 2026, it is expected that dollar-denominated stablecoins will play a role in international settlements in the Japanese market, while yen-denominated stablecoins will complement domestic infrastructure, clarifying the division of roles.
