Global credit rating agency Moody’s has initiated a pilot program to embed municipal bond credit ratings directly onto the Solana (SOL) blockchain. This pioneering effort, conducted in collaboration with tokenization startup Alphaledger, signifies Moody’s entry into the blockchain space and experiments with delivering credit scores for real-world assets in a tamper-proof, transparent manner.
The trial involved tokenizing a simulated municipal bond on Solana using Alphaledger’s Vulcan Forge platform, linking the bond’s credit rating to the token on-chain via an API that transfers data from Moody’s off-chain rating systems. This integration aims to enhance access to credit information which currently is available mainly through proprietary services such as Bloomberg terminals, potentially increasing market transparency and efficiency for institutional investors and traders.
Moody’s plans to maintain off-chain rating assessment initially, with strategic plans to extend blockchain-based credit ratings systems across additional fixed income products like corporate bonds. Alphaledger CEO Manish Dutta highlighted the model’s capacity to unlock liquidity in real-world asset markets by providing investors with trusted, real-time credit insights via blockchain.
This initiative complements broader industry momentum in real-world asset (RWA) tokenization, which various sources estimate could expand to a multitrillion-dollar market by 2033. Solana’s network is gaining traction as a promising blockchain infrastructure suitable for institutional-grade financial data and tokenized securities, bolstered recently by partnerships with firms such as R3 and launches of tokenized funds.
According to Rajeev Bamra, head of strategy for digital economy at Moody’s Ratings, the credit rating agency is actively exploring new ways for its credit assessments to support the digital finance ecosystem, enhancing interoperability and promoting more liquid and efficient bond trading with lower settlement costs. The system may help attract a broader investor base and reduce borrowing costs for municipalities and issuers.