Moody's assigns A2 investment-grade rating to Ripple's RLUSD stablecoin
Moody's Ratings assigned Ripple's RLUSD stablecoin an A2 long-term deposit rating and a P-1 short-term rating, citing liquid U.S. Treasury and cash reserves.
Moody's Ratings has assigned Ripple's RLUSD stablecoin an A2 long-term deposit rating and a P-1 short-term deposit rating, according to reporting by Unchained, Decrypt, and The Block. Jack McDonald, Ripple's senior vice president of stablecoins, stated on X that RLUSD is the first stablecoin to receive an investment-grade rating from Moody's.[6][1][5]
The ratings apply exclusively to RLUSD issued natively on the XRP Ledger and Ethereum by Standard Custody & Trust Company (SCTC), a wholly owned Ripple Labs subsidiary. Evaluating the asset under its March 2026 stablecoin methodology, Moody's grounded the grade in reserves held predominantly in highly liquid, short-duration U.S. government obligations and cash. SCTC aims to maintain reserves at 103% of circulating tokens. BNY, rated Aa1(cr) by Moody's, provides custody for most of the cash and Treasury bills.[6][2][7]
Moody's also pointed to structural credit risks, noting that SCTC is not a bankruptcy-remote vehicle and tokenholders currently possess no direct legal ownership of the reserve pool. Those vulnerabilities are partially offset by segregated accounts titled for holders under New York Department of Financial Services supervision. Moody's noted that statutory protections under the GENIUS Act, scheduled to take effect in 2027, could support a future rating upgrade by excluding required stablecoin reserves from an issuer's bankruptcy estate.[6][1]
The credit agency's evaluation comes on the heels of regulatory progress for Ripple, including final Office of the Comptroller of the Currency approval for Ripple National Trust Bank and an expanded custody arrangement with BNY, with RLUSD market capitalization reported between $2.5 billion and $2.6 billion.[6][1][3]
Key facts
- Moody's Ratings assigned Ripple's RLUSD stablecoin an A2 long-term deposit rating and a P-1 short-term deposit rating on Oct. 27, 2026.
- The rating applies only to RLUSD issued natively on Ethereum and the XRP Ledger by Standard Custody & Trust Company, a wholly owned Ripple Labs subsidiary.
- RLUSD reserves are predominantly short-duration U.S. government debt and cash, with SCTC targeting reserve coverage of 103% of outstanding tokens.
- BNY holds custody of the majority of RLUSD's Treasury bills and cash reserves.
- Moody's cited lack of direct reserve ownership by holders and SCTC's lack of bankruptcy remoteness as rating weaknesses.
- Direct RLUSD redemption at par on a T+2 basis is restricted to onboarded qualifying institutional clients.
- The ratings follow OCC final approval of Ripple National Trust Bank, with RLUSD reported at roughly $2.5 billion to $2.6 billion in size.
Sources · 7 sources
- DE
DecryptArticle ·
Moody's Rates Ripple's $2.6B RLUSD Stablecoin A2, a Day After OCC Bank Approval The ratings agency cited RLUSD's Treasury-heavy reserves, but noted that holders have no direct ownership interest in them for now.
Open source - CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: Moody’s Ratings gives Ripple’s $RLUSD stablecoin P-1 short-term and A2 long-term ratings The credit ratings and insights agency cited reserves held primarily in U.S. Treasuries and cash, assessing RLUSD’s long-term and short-term credit profiles. https://t.co/dd981gUXCf
Open source - AI
Analytics Insight@analyticsinmePost on X ·
𝐌𝐨𝐨𝐝𝐲’𝐬 𝐀𝐬𝐬𝐢𝐠𝐧𝐬 𝐑𝐢𝐩𝐩𝐥𝐞 𝐑𝐋𝐔𝐒𝐃 𝐀𝟐 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭-𝐆𝐫𝐚𝐝𝐞 𝐑𝐚𝐭𝐢𝐧𝐠 𝐀𝐦𝐢𝐝 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧 🚨🏦 Ripple’s RLUSD stablecoin has secured Moody’s A2 long-term and P-1 short-term investment-grade ratings, citing reserve quality and liquidity. The move follows Ripple’s final OCC banking approval and expanded BNY partnership, as RLUSD reaches USD 2.5 billion in market capitalization. 📈💰 #Ripple #RLUSD #Moodys #Stablecoins #CryptoNews #analyticsinsight #analyticsinsightmagazine Read More 👇 https://t.co/bg2Yni8mW0
Open source - WI
Whale Insider@WhaleInsiderPost on X ·
JUST IN: Moody's gave Ripple’s $RLUSD A2 long-term and P-1 short-term deposit ratings. The agency said the strong ratings reflect the stablecoin's reserve coverage, liquidity, and redemption arrangements. https://t.co/7v3JhxtxXH
Open source - TB
The BlockArticle ·
Moody’s assigns investment-grade ratings to Ripple’s RLUSD stablecoin Moody's Ratings assigned the RLUSD A2 long-term and P-1 short-term ratings, citing credit quality and market value of its reserve assets.
Open source - UN
UnchainedArticle ·
Moody’s Assigns A2 Deposit Rating to Ripple’s RLUSD, Ties Upgrade Path to GENIUS Act Ripple USD ( RLUSD ) now carries A2 and P-1 deposit ratings from Moody’s Ratings , which assigned the long- and short-term grades on Oct. 27 and set out what could move the stablecoin higher, including firmer legal claims for holders and the GENIUS Act taking effect in 2027. Jack McDonald, Ripple’s senior vice president of stablecoins, wrote in an X post that RLUSD is “the first stablecoin to have ever received an investment-grade” rating from Moody’s. The rating applies only to RLUSD that Standard Custody & Trust Company (SCTC), a wholly owned Ripple Labs subsidiary, issues natively on the XRP Ledger and Ethereum. Moody’s aligned the short-term grade with the long-term one and used its “Stablecoin” methodology, published in March 2026. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . The Upgrade Path Moody’s pointed to two weak spots: SCTC is not a bankruptcy-remote vehicle, and holders today have no direct ownership stake in the reserve. Keeping the reserve in segregated accounts titled for holders and under NYDFS supervision offsets that, the agency said. It said the GENIUS Act will add statutory protections “once in effect in 2027” by, among other things, keeping required reserves out of an issuer’s bankruptcy estate. Arrangements that give holders a priority interest in the reserve could support an upgrade, while weaker reserves, a lower-rated custodian or control failures could lead to a downgrade. What Moody’s Weighed Moody’s built the grade largely around what backs the token, a reserve it said “is predominantly invested in highly liquid, short-duration U.S. government assets and cash.” SCTC aims to keep that reserve at 103% of tokens outstanding, above the minimum Moody’s ties to the rating. BNY , which Moody’s rates Aa1(cr), keeps custody of most of the Treasury bills and cash. Up to $50 million in cash can sit at a bank other than the custodian, and SCTC holds an equal amount of short-term T-bills in a separate BNY account against it. Only qualifying institutions that SCTC has onboarded can redeem directly, at par and on a T+2 basis. Moody’s said an SCTC bankruptcy, and the automatic stay that would follow, could stretch that timeline. The rating follows a busy stretch for Ripple’s stablecoin. The OCC gave final approval to Ripple National Trust Bank, which is set to hold RLUSD reserves, and Ripple said BNY now custodies XRP and RLUSD for institutional clients. Ripple launched RLUSD in December 2024 after approval from New York regulators. Related Listen: Why Banks Failed to Kill Stablecoin Rewards in the Clarity Act The post Moody’s Assigns A2 Deposit Rating to Ripple’s RLUSD, Ties Upgrade Path to GENIUS Act appeared first on Unchained .
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🔥 TODAY: Moody’s Ratings has assigned Ripple’s RLUSD stablecoin A2 long-term and P-1 short-term ratings, citing reserves held mostly in US Treasurys and cash. https://t.co/aYAs1fN1M5
Open source