Moody's Analytics Introduces a Stablecoin Monitoring Service Powered by AI

Moody's Analytics has reportedly introduced Digital Asset Monitor (DAM), a novel stablecoin service that forecasts potential depeggings within a twenty-four-hour period via artificial intelligence (Cointelegraph). The service will additionally offer up-to-date information regarding the liquidity and stability of stablecoin issuers. The stablecoin market has become more stable, according to Moody's, which recorded 1,914 depeggings in 2023, of which 609 were large-cap fiat-backed stablecoins, compared to 2,847 in 2022, of which 707 were large-cap.

DAM will track 25 fiat-backed stablecoins, including PayPal Coin (PYUSD), Tether (USDT), and USD Coin (USDC), which collectively comprise over 92% of the total market capitalization of stablecoins. More stablecoins will be integrated into the service as time passes. The machine learning model discerns depegging risks, stablecoin market and liquidity dynamics, issuer stability, custodians holding the stablecoin's assets, and the quality of these reserves by integrating on-chain and off-chain data, financial statements, and economic indicators. Furthermore, DAM will furnish a transparency index that underscores the calibre of disclosures executed by the organisations that support these stablecoins backed by fiat currency.

Senior director of product innovation at Moody's Analytics, Yiannis Giokas, stated that the tool was developed in a year utilising agile development frameworks to meet consumer demands. A distinct entity from Moody's Ratings, Moody's Analytics provides periodic analysis and commentary on various facets of the cryptocurrency assets market.