Moody’s Ratings assigned Ripple’s U.S. dollar stablecoin RLUSD an A2 long-term and P-1 short-term deposit rating on October 28, 2026, marking the first investment-grade stablecoin rating from the agency.
The A2 rating reflects the credit quality and market value of RLUSD’s reserve assets, reserve coverage, liquidity, redemption arrangements, segregation and third-party custody. Moody’s said reserves are predominantly invested in highly liquid, short-duration U.S. government assets and cash, with Standard Custody & Trust Company targeting 103% reserve coverage. Most assets are held with The Bank of New York Mellon, an Aa1-rated custodian.
The agency noted the GENIUS Act, effective January 2027, will strengthen reserve asset and holder protections, including shielding required reserves from issuer bankruptcy estates. However, Moody’s cautioned that reserve segregation does not fully protect RLUSD from issuer bankruptcy effects, and holders lack direct ownership rights over the reserves, so repayments could be delayed in a default.
Ripple’s senior vice president of stablecoins, Jack McDonald, called the rating a "massive validation" for the project. Earlier this week Ripple received final OCC approval to launch Ripple National Trust Bank. RLUSD, launched in December 2024, has reached a $2.5 billion market capitalization and is used in Ripple’s payments infrastructure and as collateral in Ripple Prime.
