Moody’s Analytics, the financial services subsidiary of Moody’s, is launching a new artificial intelligence (AI) service to predict the potential depegging incidents for stablecoins and other potential risks in decentralized finance (DeFi).
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Fast Facts
- The new services, dubbed Digital Asset Monitor, will be able to predict depegging events in a 24-hour timeframe while providing real-time data on a stablecoin issuer’s liquidity, custodians that hold the assets and the quality of reserves, Moody’s said on Monday.
- A stablecoin depegs when its price fluctuates by over 3% in a day against value of the underlying asset. Moody’s noted that there were 609 depegging cases among large-cap fiat-backed stablecoins in 2023.
- Digital Asset Monitor will track 25 major fiat-backed stablecoins, including Tether’s USDT, USDC and PayPal Coin. The three stablecoins represent over 92% of the total stablecoin market capitalization.
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