Sky Protocol, the DeFi platform formerly known as MakerDAO, has received its first Moody's credit rating. On October 7, 2026, Moody's Ratings assigned the protocol a B3 grade with a stable outlook, making Sky the first stablecoin protocol to receive a rating from the agency.
The B3 rating places Sky in speculative-grade territory. Moody's based its assessment on a capital structure the agency views as vulnerable, with roughly $90 million in equity and reserves backing approximately $10 to $11 billion in managed assets. This translates to an equity cushion of less than 1% of total assets.
Sky's managed assets primarily back two stablecoins: USDS and DAI, with combined supply estimated at approximately $9.5 to $11 billion. The stable outlook signals that Moody's does not currently expect the rating to change in either direction.
Reserve Growth and Governance
A key factor in Moody's assessment was Sky Reserves, the protocol's capital buffer. Reserves grew significantly during 2026, rising from around $50 million earlier in the year to an estimated $92 million by September 17. Much of this growth reflects deliberate governance decisions, including a strategic buyback program designed to build reserves. Sky's governance has set a target of $150 million in reserves.
Second Rating from S&P
S&P Global Ratings also weighed in on Sky Protocol earlier in October 2026, assigning a B- rating. Sky is now the only stablecoin protocol carrying ratings from both major agencies.
Implications for Investors
For institutional allocators, the significance of these ratings may lie in their existence rather than the specific grades. Large institutional investors often operate under mandates requiring standardized credit assessments before engaging with assets. Sky now meets this requirement with ratings from two traditional agencies.
The ratings explicitly highlight the low equity-to-assets ratio as a concern. Any growth in stablecoin supply without matching growth in reserves would further strain this ratio. The $150 million reserve target becomes the critical benchmark to monitor, as reaching it would materially improve Sky's capital cushion relative to earlier 2026 levels.
