Global integrated risk assessment firm Moodys is reportedly devising a scoring system for stablecoins.

A source familiar with the plans told Bloomberg that the rating agency’s system will include analysis of up to 20 stablecoins based on the “quality of attestations on the reserves backing them”.

The most commonly traded tokens in the cryptocurrency marketplace, stablecoins are cryptocurrencies pegged to fiat money or other tangible assets. The intention of stablecoins’ design is that they maintain a one-to-one value with a less volatile asset, with issuers generally holding at least an equivalent amount of that asset in reserve to achieve this aim.

They are designed to maintain a one-to-one value with a less volatile asset, typically the US dollar. To achieve that, their issuers generally hold at least an equivalent amount of that asset in reserve.

Still in its early stages, it is understood that the planned system will not represent an official credit rating.

The news follows the recent collapse of FTX, formerly one of the world’s largest cryptocurrency exchanges, which prompted calls from the Bank of England for more regulation around the crypto marketplace.

According to Nansen data, at the time of its collapse – which was essentially caused by the equivalent of a bank run, wherein investors withdrew more than $6 billion in under 72 hours – FTX held $78 million in stablecoins on Ethereum compared to rival exchange Binance’s roughly $25 billion.

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