Moody’s developing stablecoin scoring system: Bloomberg

Moody's is developing a system to score stablecoins.

It will include an analysis of up to 20 stablecoins and rate them based on the quality of attestations on the reserves backing them. The company won't consider it an official credit rating, unnamed sources told Bloomberg.

The project still is in its early stages, Bloomberg also reported.

Attestations provide confirmation of a company's statements and are done by an outside firm.

Stablecoin Tether was ordered to report them on a quarterly basis after a settlement with the New York Attorney General's office, which alleged that Bitfinex used Tether's funds to secretly cover $850 million lost to a payment processor.

The crypto sector was hit hard last year by the collapse of the Terra ecosystem after the algorithmic stablecoin (Terra UST) lost its peg to the U.S. dollar.