Moody's rates Ripple's RLUSD A2, a first for stablecoins

Moody's Ratings has assigned Ripple USD (RLUSD) a long-term deposit rating of A2 and a short-term rating of P-1, reported on October 28. Ripple says it is the first stablecoin to receive an investment-grade Moody's rating. RLUSD is issued by Standard Custody & Trust Company (SCTC) on the XRP Ledger and Ethereum, with a market capitalization of roughly $2.6 billion.

Details

The ratings are published on Moody's website. According to Bitcoin.com, the issuer targets 103% reserve coverage, mostly in U.S. government assets and cash, with most reserves held at The Bank of New York Mellon. Holders can redeem at par, $1 per RLUSD, within two business days.

Jack McDonald, Ripple's senior vice president of stablecoins, said RLUSD is the first stablecoin to receive an investment-grade Moody's rating. Moody's flagged issuer bankruptcy as a redemption risk, though segregation of reserves mitigates it. Crypto.news notes the rating does not guarantee redemption and does not make RLUSD an insured bank deposit. Moody's also expects the GENIUS Act, effective in 2027, to strengthen holder protections.

The news follows a run of Ripple milestones: Coinbase added RLUSD and the OCC granted final approval to Ripple National Trust Bank.

What it means for the market

For institutional users, a credit rating from a major agency gives a familiar yardstick when choosing a stablecoin for settlement and treasury work, where internal policies often require an outside assessment. It is the first such precedent in the stablecoin market, so other issuers will now be compared with RLUSD on this measure.

The rating assesses reserve quality and redemption arrangements; it does not remove the risk of the dollar peg slipping. More on the coin on the Ripple page.

Not investment advice.