Moody’s Unveils Cutting-Edge AI Tool to Anticipate Stablecoin Shake-Ups!

"Moody's Emphasizes the Importance of New AI Tool in Assessing Stability of Fiat-Backed Stablecoins"

A new AI tool has been launched that aims to provide insights into the stability of fiat-backed stablecoins. The tool, developed by Moody’s, analyzes 25 stablecoins, including PayPal Coin (PYUSD), Tether, and USD Coin, and assesses their likelihood of depegging from their fiat currency within 24 hours. It also provides information on the stability of the stablecoin issuer, lists the custodians of the assets, and evaluates the quality of the reserves.

Moody’s emphasizes the significance of this tool in the context of the rapidly growing stablecoin market, which now represents approximately 10% of the entire cryptocurrency market. The need for such a tool is further highlighted by the fact that large-cap fiat-backed stablecoins have experienced 609 instances of depegging this year alone. Depegging refers to a movement of more than 3% against the fiat currency peg.

It is essential to note that this article has been generated with the assistance of AI and has been reviewed by an editor to ensure accuracy and adherence to journalistic standards. For further details, please refer to our terms and conditions.

Martin Reid

Martin Reid

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