TLDR
- Moody’s gave Ripple’s RLUSD stablecoin an A2 long-term and P-1 short-term deposit rating on Oct. 27.
- Ripple says RLUSD is the first stablecoin to get an investment-grade rating from Moody’s.
- The issuer targets 103% reserve coverage, mostly in U.S. government assets and cash held at BNY.
- The rating came a day after the OCC gave final approval for Ripple National Trust Bank.
- RLUSD has a $2.5 billion market cap and is expanding to Coinbase and Robinhood.
Moody’s Ratings has assigned Ripple’s RLUSD stablecoin an A2 long-term deposit rating and a P-1 short-term deposit rating. Both are investment-grade marks. The ratings were announced on Oct. 27.
🔥BULLISH: Moody's awards Ripple's $2.6B $RLUSD stablecoin an A2 investment-grade rating and its HIGHEST short-term rating, P-1.
The grades signal STRONG credit quality and top-tier short-term repayment capacity, backed by U.S. Treasuries and cash with a 103% reserve coverage… https://t.co/ig3EmfCKnk pic.twitter.com/4HJ2KNlQd9
— Coin Bureau (@coinbureau) October 28, 2026
Ripple says RLUSD is the first stablecoin to receive an investment-grade rating from Moody’s. Jack McDonald, Ripple’s senior vice president of stablecoins, called it a “massive validation” for the project.
The rating came a day after Ripple won final approval from the U.S. Office of the Comptroller of the Currency for Ripple National Trust Bank. That federally regulated bank can manage the reserves behind RLUSD. It can also act as collateral trustee for holders and offer digital asset custody.
What Moody’s Looked At
Moody’s said the A2 rating reflects the credit quality and market value of the reserve assets. It also weighed reserve coverage, liquidity and redemption arrangements. The P-1 rating matches the long-term rating.
Standard Custody & Trust Company, Ripple’s New York-regulated trust company, issues RLUSD. It targets reserves equal to 103% of the stablecoin’s obligations. Moody’s said that exceeds the minimum coverage tied to the rating.
Most reserves are held in U.S. Treasury bills, other short-term government assets and cash. The assets are held mainly at The Bank of New York Mellon, which Moody’s rates Aa1. Cash at a separate depository institution is capped at $50 million.
Eligible institutions can redeem each RLUSD for $1 within two full business days after a compliant order. Weekly liquidity stress tests support that promise. Monthly CPA attestations add further oversight.
Risks and Legal Protections
Moody’s named issuer bankruptcy as a risk to timely redemptions. An automatic stay could pause payments. Keeping the reserves separate helps reduce that risk. However, the issuer is not a bankruptcy-remote special-purpose entity, and holders do not directly own the reserve assets.
Moody’s said stronger legal protections could support an upgrade. It expects the GENIUS Act to help when it takes effect in January 2027. The law would exclude required reserves from an issuer’s bankruptcy estate.
The agency said lower ratings could follow if reserve quality falls, coverage declines or liquidity weakens. The ratings were set under Moody’s stablecoin methodology, published in March 2026.
Earlier this month, Moody’s gave Sky Protocol a B3 counterparty risk rating. That was its first rating of a stablecoin protocol. The rating covers the protocol as a whole, not USDS or DAI.
RLUSD launched in December 2024 and now has a market cap of $2.5 billion. Ripple says it is mainly used within its payment network and as collateral in Ripple Prime.
Ripple announced RLUSD access through Coinbase Prime, Coinbase Exchange and the Coinbase retail app on Oct. 28. Robinhood plans to add RLUSD to its app later this year.
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