Moody’s Ratings is preparing to issue credit evaluations for stablecoins using its own methodology, aiming to meet rising investor demand as digital assets gain traction in Asia and beyond.

Fabian Astic, managing director and global head of digital economy at Moody’s, said the move reflects a shift as digital finance technology edges closer to mainstream adoption. He declined to comment on the timing of the first ratings.

“For the past few years, there has been a gap between supply and demand,” Astic told Nikkei Asia in an interview in Tokyo. He noted that stablecoin issuers have been ready to launch new digital assets, but investors have remained cautious amid confusion about cryptocurrency risks.

Moody’s is moving from monitoring the sector to “actively engaging” with it, Astic added. He heads a cross-functional digital economy team at Moody’s that is trying to adapt its ratings and services to emerging technologies such as blockchain and artificial intelligence.

Stablecoins, which refer to digital tokens typically pegged to currencies such as the US dollar, have been viewed as a less volatile alternative to cryptocurrencies for broader use. Their market capitalization has expanded rapidly to about USD 300 billion in 2025, roughly double that of a year earlier, and could grow to as much as USD 4 trillion in the coming years, according to Astic.

While the US remains the dominant market for stablecoins, Moody’s push comes as regulatory frameworks take shape across Asia.

Japan is seen as relatively advanced, having introduced a legal framework in 2023. Last fall, Japanese fintech company JPYC began issuing the first JPY-denominated stablecoins, with cumulative issuance reaching JPY 1 billion (USD 6.4 million) as of February.

Elsewhere, South Korea is gaining momentum as lawmakers debate new rules for digital assets. Financial hubs such as Hong Kong and Singapore are rolling out their own regimes, though fragmentation remains a major obstacle.

Yet Astic cautioned that the term “stablecoin” can often be misleading. Unlike central bank money, these tokens carry credit risk, he said, meaning their value ultimately depends on the issuer’s ability to meet redemption promises.

“If two identical bonds are settled in different stablecoins, and one is weaker than the other one from a credit perspective … as an investor, that’s useful information to make an informed decision,” he said, adding that not all stablecoins are equal from a credit standpoint.

To address this, Moody’s published its methodology for rating stablecoins in March. The framework evaluates the quality of reserve assets backing the tokens, including their creditworthiness, exposure to market volatility and performance under stress scenarios.

It also assesses liquidity mismatches, operational and counterparty risks, and the legal enforceability of claims, as well as technology and cybersecurity risks associated with blockchain infrastructure.

In Asia, Astic pointed to potential adoption of stablecoins in remittance-heavy markets, such as the Philippines, where traditional cross-border systems are slow or costly. He also highlighted use cases among small and medium enterprises, which can utilize stablecoins to speed up settlement times, easing working capital pressures.

At the same time, stablecoins are increasingly seen as a potential settlement asset for financial transactions, particularly as interest in asset tokenization grows. Asset tokenization is a process of converting ownership rights of physical or intangible assets into digital tokens on a blockchain.

Astic estimates that as much as USD 250 trillion in assets, such as real estate, commodities, and luxury goods, remains “trapped” in legacy systems and could be unlocked through asset tokenization. He sees stablecoins playing a key role in enabling tokenized financial markets by acting as a form of “digital cash” within blockchain-based systems.

But significant hurdles remain before the technology can scale. The market remains fragmented, while regulatory uncertainty continues to slow adoption, Astic said. A lack of interoperability between systems limits the seamless movement of assets across borders.

Moody’s sees credit ratings as a way to help address that final hurdle. By providing independent risk assessments, they can build confidence among institutional investors and support broader adoption in financial markets.

“Among the conditions that are needed for a stablecoin to scale is trust,” he said. “And that is essentially what we summarize in a credit rating.”

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

Note: JPY figures are converted to USD at rates of JPY 156.31 = USD 1 based on estimates as of May 7, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.