{"id":195644,"date":"2023-11-07T01:38:59","date_gmt":"2023-11-07T01:38:59","guid":{"rendered":"https:\/\/tokenstalk.info\/?p=195644"},"modified":"2023-11-07T01:38:59","modified_gmt":"2023-11-07T01:38:59","slug":"moodys-unveils-service-that-uses-ai-to-predict-stablecoin-depeggings","status":"publish","type":"post","link":"https:\/\/tokenstalk.info\/crypto\/moodys-unveils-service-that-uses-ai-to-predict-stablecoin-depeggings\/","title":{"rendered":"Moody\u2019s unveils service that uses AI to predict stablecoin depeggings"},"content":{"rendered":"
Moody\u2019s Analytics is launching a new stablecoin service that will use AI to predict probable depeggings \u201cin a 24-hour time horizon\u201d while providing real-time insights about stablecoin issuers\u2019 liquidity and stability.<\/p>\n
The stablecoin market is getting stabler, Moody\u2019s observed in its Nov. 6 announcement for the launch of Digital Asset Monitor.\u00a0<\/p>\n
So far in 2023, there have been 1,914 depeggings, of which 609 were of fiat-backed large-cap stablecoins. This compares with 2,847 in all of 2022, of which 707 were large-cap. While some correlation to rising interest rates can be observed, a number of coin-specific causes can also be detected, Moody\u2019s said.<\/p>\n
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Moody\u2019s DAM will track 25 fiat-backed stablecoins that represent over 92% of total stablecoin market capitalization. They include Tether (USDT), USD Coin (USDC), and PayPal Coin (PYUSD). More stablecoins will be incorporated into the service in time, according to its website:<\/p>\n
\u201cDigital Asset Monitor (DAM) is a machine learning model that combines on and off chain data, financial statements and economic indicators.\u201d<\/p><\/blockquote>\n
Besides identifying depegging risks, the service will indicate \u201cthe stablecoin\u2019s market and liquidity dynamics, the stability of the stablecoin issuer, the custodians that hold the stablecoin\u2019s assets, and the quality of these reserves.\u201d In addition, it will provide \u201ca transparency index that will highlight the quality of disclosures made by the entities behind these fiat-backed stablecoins.\u201d<\/p>\n
Related: AI and blockchain will \u2018reshape sectors\u2019 and create new markets from scratch \u2014 Moody\u2019s<\/em><\/strong><\/p>\n
\u201cThe tool was built in a year using agile-development frameworks to address customer needs,\u201d Moody\u2019s Analytics\u2019 product innovation senior director, Yiannis Giokas, said in the announcement.<\/p>\n
Reports that the company was developing the new service emerged at the beginning of the year. Moody\u2019s Analytics is a separate company from Moody\u2019s Ratings. It provides commentary on aspects of the crypto assets market on a regular basis. <\/p>\n
Magazine: Unstablecoins: Depegging, bank runs and other risks loom<\/em><\/strong><\/p>\n