Moody’s On The Blockchain: A pilot test of credit ratings in Solana
Often tout as a next Gen alternative to Ethereum or Bitcoin, Solana Blockchain is now making headlines for a different reason: Onchain credit ratings.
In June 2025, Moody cooperated at a fintech startup called Alphaledger to run a pilot program to explore how traditional Credit ratings Can be combined with blockchain systems. Here they did:
- They created a tokenized bond municipality: Alphaledger has signed a standard Municipal Bond . This means that the bond has become a programmable digital asset that can be monitored, moved and operated on the onchain.
- Moody gave that bond a real credit rating: Using their standard financial and methodical examination tools, Moody examined the risk of bond, as for any traditional debt instrument, and it was assigned a rating (for example, AAA, AA, etc.).
- The rating was pushed to the blockchain: Instead of keeping that rating locked in a PDF report or behind a subscription database, Moody used an API to send the rating data directly to Solana blockchain. It has become part of the metadata of the bond token – permanently embedded and publicly visible.
As a result, whoever interacted with that token to Solana (including Smart contracts) can read the Moody rating automatically without having to verify it through an external resource.
The experiment showed how to be part of credit ratings The main infrastructure of the blockchainBaked directly to intelligent contracts to help automate how financial products are issued and evaluated.
This article explains why everything is important, even if you New to cryptotraditional finances or concepts such as programmable creditwortiness.
What is a credit rating on onchain, and why is it important?
At its core, a credit rating is an assessment of how a borrower is likely to pay off the debt.
Traditional credit-rating agencies such as Moody’s, S&P and Fitch assign letter scores (for example, AAA, AA, BBB) to entities such as governments or corporations based on health and danger factors. These scores are important for investors reviewing bonds, loans and structured products.
A higher rating, such as the AAA, indicates strong credentials and low default risk. Lower ratings, sometimes referred to as “waste status,” suggests an increased risk. These ratings directly affect the interest rates of lenders (such as governments or companies that release bonds) should offer to attract investors (such as asset managers, pension funds, or individual bondholders). For example, an A-rated bond usually pays a lower yield than an imaginary-grade.
These scores guide trillion dollars in global debt flow. From the release of a municipality bond to corporate loans, credit ratings help determine borrowing and investor appetite costs. They are essentially a shorthand for risk, similar to how your Personal credit score affects interest rate on a mortgage or credit card.
Moody’s X Solana: Smart Contracts and Credit Ratings
The Moody’s and Alphaledger’s pilot project offered a glimpse of the future of financial blockchain-native instruments.
Let’s review how it worked:
- A simulated municipal bond is issued as a digital token in Solana’s blockchain.
- Moody reviewed and appointed the bond’s credit rating.
Using an API, the credit rating was pushed to the chain.
Unlike a traditional rating that appears on a PDF or database ownership, this credit rating is read by the machine and permanently recorded as irreplaceable data in the blockchain. In other words, intelligent contracts or decentralized application in Solana can automatically demand the rating of a bond as part of their logic – without the need for human input.
This idea is the capture of the crypto world by storm. For example, Daniel Cash, Highlighting Moody’s has achieved a first-of-its-kind feat: one that will shape the future of credit assessment. Cash is an elder (non -resident) at the United Nations University Center for Policy Research.
Although no real money has changed hands on the simulation, the implications are huge. This model can enable real-time credit assessments, automatic compliance and completely new forms of programmed financial infrastructure.
Do you know? The debt to the US municipality is a massive market. By the first quarter of 2025, the remaining bonds in the US municipality reached nearly $ 4.2 trillion, with more than $ 220 billion issued by May only.
Blockchain-Financies Financial Instruments: Why puts credit ratings on a blockchain?
As more tokenized real-world assets enter into blockchain ecosystems, having a trustworthy name such as Moody’s assigning ratings directly to properties will help promote legitimacy and transparency.
Let’s assume that an institutional investor inspected a Tokenized The bond of the municipality released in Solana Blockchain. Instead of checking a PDF or blogging in the moody owner system, they immediately see the bond blockchain rating, which is pulled directly from the chain itself.
According to Alphaledger CEO Manish Dutta, this model can “unlock liquidity in real-world assets by providing investors to access to a trusted brand like Moody’s.”
Using the credit rating embedded in the digital token, Solana becomes a layer of trust for the blockchain-native-foamed instruments.
Programmable CreditWortiness: Institutional adoption meets tokenization
Moody’s pilot in Solana shows how Onchain’s credit ratings can bring confidence in the institutional and transparency to the growing world of tokenized real-world assets.
There is a wider signal here. Moody test shows how traditional credit agencies adapt to blockchain -based finance demands. Institutions may not be in touch with Crypto-native markets Unless they trust data and risk signals. Putting credit ratings on blockchain space bridges.
The pilot is also highlighting Solana’s capacity To handle the institutional financial data-a nod to the throughput and reliability of the chain. These are two things that care about large institutions when assessing financial infrastructure trends.
This experiment fits well with the greater trend of tokenization. Number Real-world assets (RWAs) Like bonds, loans and funds are asditizing, they need familiar metrics to develop investor confidence.
Do you know? BCG and Ripple forecasts up to $ 18.9 trillion in tokenized assets by 2033. For this market, onchain versions of tools such as credit scores will be important.
How onchain ratings can be powerful more intelligent finances
Putting a credit rating directly on the onchain opens up to possibilities more than visibility. It introduces the potential for smart contracts and credit ratings to contact directly.
For example, a lending protocol can automatically adjust interest rates or collateral requirements if a borrower’s credit rating drops. This is a basic concept of programmable creditwortiness, where ratings can act.
That being said, the incorporation of irreplaceable data also introduces challenges. If a rating changes, how is the blockchain record updated? Who is in charge of that process? What if a rating is debated? These are all questions that need to be addressed as a blockchain regulation in 2025 emerging.
