Moody’s tests first on-chain credit rating system on Solana

Global credit rating agency Moody’s is testing a system to rate municipal bonds directly on the Solana blockchain.

One of the “big three” global credit rating agencies has entered the blockchain space. On Wednesday, June 11, Moody’s began testing the issuance of credit scores directly on the Solana (SOL) blockchain. These credit ratings will be used to assess the risk of municipal bonds issued by local governments.

Moody’s will first assess credit ratings off-chain, then publish them to Solana using an API. The company will use Alphaledger’s Solana-based tokenization protocol to turn these scores into tokenized, real-world assets.

Why Moody’s is testing blockchain for credit ratings

The pilot could eventually bring credit ratings fully on chain, significantly improving access to information for investors. Currently, most ratings are available only through Bloomberg terminals or proprietary software. Using blockchain would offer Moody’s a tamper-proof, transparent database.

“We continue to embrace innovation in finance and actively explore new avenues for digital finance ecosystem to access our credit assessments,” said Rajeev Bamra, head of strategy for digital economy at Moody’s Ratings.

The system also has the potential to make bond trading more efficient and liquid by lowering settlement costs for traders. For municipalities and bond issuers, it may attract a broader investor base and reduce borrowing costs.

“We’ve demonstrated a potential scalable model that can unlock liquidity to real world assets by providing investors access to a trusted brand like Moody’s Ratings,” said Alphaledger CEO Manish Dutta.

Real-world assets remain one of the most promising use cases for crypto. According to Ripple and BCG, the tokenization market could reach $18.9 trillion by 2033, thanks to its ability to bring liquidity and transparency to traditional finance. RWAs may also open up previously inaccessible private markets to a broader range of investors.