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 <p class="is-style-lead">In total, more than 1,910 depegs have occurred on the stablecoin market as of September 2023, analysts at Moody’s say.</p>
 <p>Lage cap fiat-backed stablecoins have depegged 609 times up to mid-September 2023 due to several macro and coin-specific factors.</p>
 <p>According to a recent report from Moody’s, the <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> area has witnessed 1,914 depegs so far, representing a 32.7% decline compared to 2022, when the market had a total of 2,847 depegs.</p>
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   Stablecoins market capitalization | Source: DefiLlama
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 <p>The international credit agency says the high-profile depegs of 2022 were mainly triggered by “rising interest rates.” This trend was seen again in March 2023, when crypto-friendly banks in the U.S. collapsed one by one.</p>
 <p>For data compiling, Moody’s took data on 25 fiat-backed <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a>, including Tether (USDT), USD Coin (USDC), and PayPal’s (PYUSD), a selection which represents over 92% of the total <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> market capitalization, the firm said.</p>
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 <p>In the future, Moody’s plans to start offering insights on market sentiment for the fiat-backed <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a> as well as tokenized T-bills and overcollateralized <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a>. Moody’s scoring <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> system, not linked to its rating business, is another incentive for companies issuing <a rel="noopener noreferrer nofollow" title="stablecoins" href="https://thebittimes.com/tag/stablecoins.html">stablecoins</a> to remain transparent and compliant. These two factors have become increasingly important for cryptocurrency investors after the FTX crash that has shaken the entire industry.</p>
 <p>Meanwhile, the U.S. Securities and Exchange Commission (SEC) is eyeing traditional companies that seek to issue their stablecoins amid a non-transparent regulatory environment in the U.S.</p>
 <p>In early November 2023, PayPal revealed in its 10-Q report it had received an investigative subpoena from the regulator regarding its <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> tied to the U.S. dollar. While the details behind the move remain unclear, the firm said the subpoena “requests the production of documents.”</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Kaiko: USDT has been depegging throughout August
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/large-cap-stablecoins-depegged-600-times-in-2023-moody-s-tbt69361.html">https://thebittimes.com/large-cap-stablecoins-depegged-600-times-in-2023-moody-s-tbt69361.html</a></p>

Large cap stablecoins depegged 600+ times in 2023: Moody’s

TheBitTimes

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