At a glance

  • Moody’s Ratings has assigned RLUSD, Ripple’s dollar stablecoin, an A2 long-term and a P-1 short-term deposit rating, both investment grade, The Block reported, citing the agency’s rating action.
  • Moody’s said the reserve is “predominantly invested in highly liquid, short-duration U.S. government assets and cash”, held at BNY.
  • Ripple’s Jack McDonald called RLUSD “the first stablecoin to have ever received an investment-grade” Moody’s rating.

The ratings come a day after Ripple won final approval for its national trust bank, which will hold the coin’s reserves. RLUSD is issued by Standard Custody & Trust Company, Ripple’s New York trust company.

A credit rating gives institutions a familiar way to judge repayment capacity. A2 is the sixth-highest of Moody’s long-term grades; P-1 is its top short-term grade.

What did Moody’s look at?

The A2 rating reflects the credit quality and market value of the reserve assets, how far they cover the coins in issue, and the coin’s liquidity and redemption arrangements, Moody’s said. It also weighed how the reserve is kept apart from the issuer and held by third parties, along with operational, technological and legal factors.

The P-1 short-term rating is aligned with the long-term one, the agency said.

It is not Moody’s first look at the sector: see Moody’s B3 rating for Sky Protocol, the USDS issuer, which was an issuer rating rather than a deposit rating.

Who holds the money?

Treasury bills, other short-dated US government paper and cash make up most of the reserve, Moody’s said. The custodian is BNY, which the agency rates Aa1.

“[Standard Custody & Trust Company] targets 103% Reserve coverage, which exceeds the minimum coverage level associated with the rating,” Moody’s said. That means slightly more in reserve than the coins outstanding.

Moody’s also noted that the US GENIUS Act, which takes effect in January 2027, will keep required reserves outside an issuer’s bankruptcy estate. The rating could fall if the reserve’s credit quality, coverage or liquidity weakens, the agency said.

RLUSD launched in December 2024 and has a market value of $2.5 billion, according to Ripple.

Ripple’s claim

McDonald, Ripple’s senior vice president for stablecoins, wrote on X that P-1 is “the highest possible short-term rating under its new stablecoin framework”. CryptoWatchDesk has not independently checked whether any other stablecoin holds a comparable Moody’s rating.

What it changes for users

For holders, nothing changes in how RLUSD is bought or redeemed. A rating is an outside assessment of the backing, not a guarantee: it does not promise redemption or protect the dollar peg, crypto.news noted.

For banks and funds, a Moody’s grade is a familiar yardstick when deciding whether a stablecoin can be held or accepted as collateral. For the basics, see what a dollar stablecoin is.

This article is for information only and is not investment advice.