Moody’s assigns investment-grade ratings to Ripple’s RLUSD stablecoin
Moody’s Ratings assigned Ripple's U.S. dollar-denominated stablecoin A2 long-term and P-1 short-term deposit ratings, both investment-grade marks.The agency said the A2 long-term deposit rating reflects its assessment of the credit quality and market value of RLUSD's reserve assets, reserve coverage, liquidity and redemption arrangements.It also pointed to the segregation of the reserve and its custody with third parties, as well as operational, technological, legal, regulatory and other structural considerations. The P-1 rating aligns with the long-term rating, Moody's said."The Reserve is predominantly invested in highly liquid, short-duration U.S. government assets and cash," Moody's said. "[Standard Custody & Trust Company] targets 103% Reserve coverage, which exceeds the minimum coverage level associated with the rating."The majority of RLUSD's reserve assets comprises U.S. Treasury bills, other short-term U.S. government assets, and cash, held with The Bank of New York Mellon (BNY), which is an Aa1-rated custodian, according to Moody's.The agency further noted that the GENIUS Act, taking effect in January 2027, will strengthen protections for reserve assets and stablecoin holders, including shielding required reserves from an issuer's bankruptcy estate.The ratings were assigned under Moody's Stablecoin methodology published in March 2026. Deterioration in the credit quality or market value of reserve assets, a decline in coverage, or weaker liquidity or redemption capacity could lead to lower ratings.Jack McDonald, senior vice president of stablecoins at Ripple, said RLUSD is the first stablecoin to receive an investment-grade rating from Moody's, calling it a "massive validation" for the project.Earlier this week, Ripple received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to launch Ripple National Trust Bank. The national charter, as a federally regulated platform, is authorized to manage the segregated reserves supporting RLUSD, act as collateral trustee of those reserves for RLUSD holders, and provide fiduciary digital asset custody services.The U.S. dollar stablecoin, launched in December 2024, has grown to a $2.5 billion market capitalization. Ripple said it's mainly used as an instrument within Ripple's payment infrastructure and as collateral in Ripple Prime.