According to Cointelegraph, Moody's Analytics has announced the launch of Digital Asset Monitor (DAM), a new stablecoin service that uses artificial intelligence to predict probable depeggings within a 24-hour time horizon. The service will also provide real-time insights into stablecoin issuers' liquidity and stability. Moody's noted that the stablecoin market has become more stable, with 1,914 depeggings in 2023, of which 609 were fiat-backed large-cap stablecoins, compared to 2,847 in 2022, with 707 being large-cap.
DAM will track 25 fiat-backed stablecoins, representing over 92% of the total stablecoin market capitalization, including Tether (USDT), USD Coin (USDC), and PayPal Coin (PYUSD). The service will incorporate more stablecoins over time. The machine learning model combines on and off-chain data, financial statements, and economic indicators to identify depegging risks, stablecoin market and liquidity dynamics, issuer stability, custodians holding the stablecoin's assets, and the quality of these reserves. Additionally, DAM will provide a transparency index highlighting the quality of disclosures made by the entities behind these fiat-backed stablecoins.
Yiannis Giokas, Moody's Analytics' product innovation senior director, stated that the tool was built in a year using agile-development frameworks to address customer needs. Moody's Analytics, a separate company from Moody's Ratings, regularly provides commentary on aspects of the crypto assets market.
