Moody's gives Ripple's RLUSD stablecoin investment-grade A2 and P-1 ratings, citing its Treasury-heavy reserves

Summary

Moody's Ratings assigned Ripple USD (RLUSD) an A2 long-term and a P-1 short-term deposit rating, citing the credit quality and market value of its reserve assets, The Block and Decrypt reported.

Decrypt said A2 is the sixth-highest long-term grade on Moody's scale and P-1 is its top short-term grade, and that the reserves sit mainly in Treasury bills, other short-term U.S. government assets and cash, mostly with custodian BNY.

Moody's also flagged gaps: RLUSD issuer Standard Custody & Trust Company is not bankruptcy-remote and holders do not currently have a direct ownership interest in the reserves, though the agency said the GENIUS Act will exclude required reserves from an issuer's bankruptcy estate once it takes effect in 2027, per Decrypt.

The rating came a day after Ripple won final OCC approval for its national trust bank, which Decrypt said will manage RLUSD's reserves while Standard Custody keeps issuing the token under New York DFS oversight.

Key facts

• Reserves target 103% coverage of tokens in circulation, and eligible institutional holders can redeem RLUSD at par within two business days, Decrypt reported. (Decrypt)
• The ratings were requested by the issuer, Moody's said, according to Decrypt. (Decrypt)
• RLUSD has a market capitalization of about $2.6 billion according to CoinGecko, Decrypt said, against a stablecoin market of some $300 billion. (Decrypt)
• The Block described the A2 and P-1 grades as investment-grade ratings. (The Block)

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