Moody’s rates Ripple RLUSD investment grade

Moody’s Ratings has assigned Ripple’s U.S. dollar stablecoin, RLUSD, an A2 long-term deposit rating and a P-1 short-term deposit rating, placing the token’s reserve structure within the agency’s investment-grade range. The ratings assess the quality, liquidity, coverage and custody of assets backing RLUSD, rather than making a judgment on the price prospects of Ripple’s XRP token or the stablecoin market as a whole.

Moody’s said RLUSD’s rating is supported by reserves held primarily in short-duration U.S. government securities and cash, with assets held in custody at The Bank of New York Mellon. The agency identified BNY Mellon as an Aa1-rated custodian and cited the segregation of reserve assets and third-party custody arrangements as part of its assessment.

The decision gives RLUSD an independently issued credit assessment as Ripple expands its regulated financial infrastructure in the United States. Earlier this week, the Office of the Comptroller of the Currency granted final approval for Ripple National Trust Bank, a national trust charter authorized to manage segregated RLUSD reserves, serve as collateral trustee for holders and provide fiduciary digital-asset custody.

Reserve quality and redemption capacity underpin the ratings

Moody’s said its A2 long-term rating reflects the credit quality and market value of the reserve portfolio, as well as reserve coverage, liquidity and the mechanisms available for redemptions. The P-1 short-term rating, the agency’s highest short-term rating category, is consistent with the long-term assessment, Moody’s said.

Standard Custody & Trust Company, a Ripple entity, targets reserve coverage of 103%, according to Moody’s. That target exceeds the minimum level associated with the rating, providing a buffer above RLUSD tokens outstanding. Stablecoin reserve coverage refers to the value of liquid assets available to meet redemption claims compared with the value of tokens in circulation.

The reserve portfolio consists mostly of U.S. Treasury bills, other short-term U.S. government assets and cash, Moody’s said. The short duration of those holdings limits exposure to large price movements caused by changing interest rates, while government securities and cash can generally be converted into dollars more readily than longer-dated bonds or riskier credit instruments.

For stablecoin users, the practical test is whether an issuer can redeem tokens at par during periods of elevated demand. Moody’s incorporated the liquidity of the assets and RLUSD’s redemption arrangements into its assessment, placing the focus on the operational path from a token redemption request to the delivery of U.S. dollars.

National trust charter adds a regulated reserve manager

The OCC’s approval for Ripple National Trust Bank connects RLUSD’s reserve management to a federally chartered trust-bank structure. Under the approved charter, the bank may manage the reserves backing RLUSD and act as collateral trustee for stablecoin holders.

That arrangement could give holders a more defined fiduciary framework around the reserve assets than a structure in which an operating company directly controls all backing funds. The charter also permits Ripple National Trust Bank to offer fiduciary custody services for digital assets, adding a second business line beyond RLUSD’s reserve administration.

Moody’s separately pointed to legal, regulatory, technological and structural factors in assigning the ratings. Its assessment included the segregation of reserves from other assets and the use of third-party custody, areas that have drawn greater attention since past failures among crypto businesses exposed weaknesses in customer-asset protections.

GENIUS act provisions feature in Moody’s assessment

Moody’s also referenced the GENIUS Act, which is scheduled to take effect in January 2027. The agency said the law would strengthen protections for stablecoin reserve assets and holders, including provisions designed to shield required reserves from an issuer’s bankruptcy estate.

The legislation’s implementation would provide a more explicit statutory treatment of reserves than the patchwork of state-level regimes and contractual structures that has governed much of the U.S. stablecoin sector. Its impact on existing issuers will depend on the final rules and how regulators apply reserve, disclosure and redemption requirements.

Moody’s used its stablecoin methodology, published in March 2026, for the RLUSD ratings. The agency said it could lower the assessments if reserve assets lose credit quality or market value, if reserve coverage falls, or if the stablecoin’s liquidity and redemption capacity weaken.

Those conditions make clear that the ratings are tied to the continuing management of RLUSD’s backing rather than being permanent endorsements of the token. A stablecoin’s reserves can change in composition, and its operational systems can face pressure when market conditions lead to concentrated redemption demand.

RLUSD reaches $2.5 billion market capitalization

RLUSD launched in December 2024 and has grown to a market capitalization of about $2.5 billion, according to the information provided by Ripple. The token is designed to maintain a one-to-one value with the U.S. dollar and operates across blockchain networks used for cryptocurrency payments and settlements.

Jack McDonald, senior vice president of stablecoins at Ripple, said RLUSD is the first stablecoin to receive an investment-grade rating from Moody’s. The rating gives Ripple a credential it can present to institutions assessing the reserve practices behind dollar-pegged tokens, particularly those seeking independently evaluated standards for asset quality and custody.

The stablecoin sector has become increasingly concentrated around issuers able to demonstrate reliable redemption processes, conservative reserve management and access to established financial institutions. RLUSD remains much smaller than the largest dollar-pegged tokens, but its Moody’s ratings and the approved national trust bank place Ripple’s product within the emerging U.S. framework for regulated stablecoin reserve management.