Moody’s rates Ripple’s RLUSD stablecoin A2, first investment grade

Key points

• Moody's assigned RLUSD an A2 long-term and P-1 short-term rating
• Ripple says it is the first stablecoin rated investment grade by Moody's
• Reserves are mostly short-term U.S. government assets and cash at BNY, with 103% coverage target
• RLUSD market cap is about $2.5 billion, per The Block

Moody’s Ratings has assigned Ripple’s dollar stablecoin RLUSD an A2 long-term deposit rating and a P-1 short-term deposit rating, both investment grade, The Block reported on Wednesday. Ripple says RLUSD is the first stablecoin to receive an investment-grade rating from Moody’s.

What Moody’s cited for the RLUSD rating

According to The Block, Moody’s said the A2 rating reflects the credit quality and market value of the reserve assets, reserve coverage, liquidity and redemption arrangements. It also pointed to the segregation of reserves, third-party custody, and operational, legal and regulatory considerations. The P-1 short-term rating is aligned with the long-term grade.

Moody’s said the reserve is mainly held in highly liquid, short-duration U.S. government assets and cash, per The Block. Most of it sits in Treasury bills, other short-term government assets and cash at The Bank of New York Mellon, which Moody’s rates Aa1. The custodian targets reserve coverage of 103%, above the minimum associated with the rating.

The ratings were assigned under Moody’s stablecoin methodology, published in March 2026. According to The Block, Moody’s said weaker reserve quality, lower coverage, or weaker liquidity or redemption capacity could lead to lower ratings.

A2 is investment grade but below Moody’s top long-term grade of Aaa, while P-1 is its highest short-term category, according to crypto.news. That outlet also noted that a rating does not guarantee redemption or a stable dollar peg, and that it does not make RLUSD an insured bank deposit.

Issuer, reserves and market size

The rated obligations are issued by Standard Custody & Trust Company, a New York-regulated Ripple subsidiary, on the XRP Ledger and Ethereum, crypto.news reported. RLUSD launched in December 2024 and has a market capitalization of about $2.5 billion, according to The Block. Ripple says the token is used mainly within its payment infrastructure and as collateral in Ripple Prime.

Jack McDonald, Ripple’s senior vice president of stablecoins, called the rating a “massive validation” for the project, The Block reported.

Regulatory backdrop

Moody’s said the GENIUS Act, which takes effect in January 2027, is expected to strengthen reserve and holder protections, including shielding required reserves from an issuer’s bankruptcy estate, according to The Block.

Earlier this week, Ripple received final approval from the Office of the Comptroller of the Currency for Ripple National Trust Bank, The Block said. The charter would let it manage RLUSD’s segregated reserves, act as collateral trustee for holders and provide fiduciary digital asset custody.

Moody’s published the rating action on its ratings site. The Block did not report a rating outlook, and the full analytical rationale was not available in the coverage reviewed.