Moody's Ratings has assigned Ripple USD (RLUSD) an A2 long-term and P-1 short-term deposit rating, making it the first stablecoin to receive an investment-grade rating from the agency. The ratings were assigned on October 27, a day after Ripple won final approval from the U.S. Office of the Comptroller of the Currency (OCC) for Ripple National Trust Bank.
RLUSD is natively issued on the XRP Ledger and Ethereum by Standard Custody & Trust Company (SCTC), Ripple's New York-regulated trust company. Ripple National Trust Bank will manage RLUSD reserves and serve as collateral trustee for token holders, though SCTC remains the issuer.
An A2 rating falls within Moody's upper-medium-grade category, indicating low credit risk. The P-1 short-term rating is Moody's highest, reflecting a superior ability to meet short-term obligations.
Reserve Structure and Redemptions
SCTC targets reserve assets equal to 103% of RLUSD obligations, exceeding the minimum coverage associated with the rating. Dollar-backed reserves predominantly comprise highly liquid, short-duration U.S. government assets and cash, held mainly with The Bank of New York Mellon.
Eligible institutions can redeem each RLUSD for its $1 face value within two full business days after a compliant order. Weekly liquidity stress testing supports this redemption obligation. Operational safeguards include funding before token issuance, token destruction before redemption payments, daily reconciliations, multisignature controls, and independent smart-contract reviews. Monthly CPA attestations provide additional oversight.
Bankruptcy Considerations
Moody's identified issuer bankruptcy as a risk to timely RLUSD redemptions. An automatic stay could delay payments, though reserve segregation provides some mitigation. SCTC is not a bankruptcy-remote special-purpose entity, and holders lack direct ownership of the assets.
Moody's noted that stronger legal protections could support a rating upgrade. The agency expects the GENIUS Act, expected to become effective in 2027, to strengthen holder safeguards by excluding required reserves from an issuer's bankruptcy estate.
Expanding Distribution
RLUSD distribution is expanding through multiple platforms. Robinhood has announced planned RLUSD integration targeting app availability later this year. Coinbase announced access through Coinbase Prime, Coinbase Exchange, and the Coinbase Retail app on October 28, with Coinbase Global Exchange availability to follow. The Bank of New York Mellon also announced expanded XRP and RLUSD custody services on October 27.
