Moody’s warns “cryptoization” is undermining monetary policy and bank deposits in emerging markets amid uneven regulatory oversight. As stablecoin and cryptocurrency adoption accelerate worldwide, emerging markets face mounting risks to monetary sovereignty and financial stability, according to a new report from Moody’s Ratings. The credit rating service warned that widespread use of stablecoins — tokens pegged 1:1 with another asset, usually a fiat currency like the US dollar — could weaken central banks’ control over interest rates and exchange rate stability, a trend called “cryptoization.” Banks could also “face deposit erosion if individuals shift savings from domestic bank deposits into stablecoins or crypto wallets,” the report said. Read more
Moody’s and Alphaledger’s pilot on Solana shows how traditional credit ratings can be embedded directly into tokenized bonds. Often touted as a next-gen alternative to Ethereum or Bitcoin, the Solana blockchain is now making headlines for a very different reason: onchain credit ratings. In June 2025, Moody’s teamed up with a fintech startup called Alphaledger to run a pilot program to explore how traditional credit ratings could be integrated into blockchain systems. Here’s what they did: Read more
Moody’s finds growing institutional demand for tokenized money market funds, citing benefits in liquidity, compliance and operational efficiency. Tokenized short-term funds, a new class of digital financial products bridging traditional and decentralized finance, have grown to reach $5.7 billion in assets since 2021, according to a new Moody’s report. The credit rating service sees growing interest from traditional asset managers, insurers, and brokerages looking to offer clients access between fiat and digital markets. “Tokenized short-term liquidity funds are a small but rapidly growing product,” notes a June 3 report shared with Cointelegraph. These funds, typically backed by US Treasurys or other low-risk assets, operate similarly to traditional money market funds but use blockchain to issue and manage fractional shares, enabling real-time settlement. Data from the Federal Reserve shows that US money market funds held approximately $7 trillion in total assets as of December 2024. Read more
Bitcoin’s sharp sell-off from $107,000 was the result of profit taking, not contagion from Moody’s recent downgrade of US debt. Key takeaways: Bitcoin recovered from its sharp sell-off from $107,000, suggesting it functions as a hedge against uncertainty for investors reacting to Moody’s recent downgrade of US debt. Moody’s downgraded the US credit rating to Aa1, citing a $36 trillion debt and rising deficits, causing market turbulence and a spike in US Treasury yields. Read more