Morningstar to rate debt-based cryptoassets on blockchain

posted 16 days ago
Morningstar Credit Ratings is moving into the industry of assets issued on a blockchain. The rating agency is on the verge of rating a number of “debt-based cryptoassets.” Traditionally, Morningstar Inc., which is valued at $6.4 billion, uses grades of 1 to 5 stars to rate a wide range of assets based on their past returns to investors relative to the risk of the investment. While Morningstar’s ratings services extend to government and corporate bonds, its blockchain work so far is limited to structured financial debt instruments.

“We’re working very closely with a number of blockchain-oriented firms who are looking to issue debt instruments on a blockchain,” says Morningstar Credit Ratings chief operating officer Michael Brawer, who oversees the company’s internal strategy. “We're looking to see how we can also provide credit opinions, whether it’s a credit rating or different types of credit data and credit analytics that accompany those debt instruments, and we’re also looking to provide our services on a blockchain.”
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