Ripple’s RLUSD Wins Historic Moody’s Rating After US Bank Approval

RLUSD Receives A2 and P-1 Ratings

Moody’s Ratings assigned RLUSD A2 semipermanent and P-1 short-term deposit ratings connected Oct. 27, assessing its backing and redemption framework. The Moody’s RLUSD deposit ratings use to stablecoins natively issued connected the XRP Ledger and Ethereum by Standard Custody & Trust Company (SCTC), Ripple’s New York-regulated spot company.

The standing came a time aft Ripple won last approval from the U.S. Office of the Comptroller of the Currency (OCC) for Ripple National Trust Bank, disclosed Oct. 26. The bank’s approved activities see managing RLUSD reserves and serving arsenic collateral trustee for holders, portion SCTC remains the issuer.

Investment-grade ratings bespeak comparatively debased recognition risk. A2 falls wrong Moody’s upper-medium-grade category, indicating debased recognition risk. P-1 is its highest short-term rating, reflecting a superior quality to conscionable short-term obligations.

Jack McDonald, Ripple’s elder vice president of stablecoins, discussed RLUSD’s Moody’s ratings successful an Oct. 27 station connected X stating:

“RLUSD is the archetypal stablecoin to person ever received an investment-grade Moody’s rating.”

Bluechip, an autarkic stablecoin standing agency, antecedently assigned RLUSD an A standing and first-place stablecoin ranking connected July 18, 2025. That appraisal utilized Bluechip’s stablecoin hazard framework. Moody’s assigned deposit ratings nether its abstracted methodology. Ripple’s first-ever assertion specifically concerns an investment-grade standing from Moody’s.

Moody’s gave Sky Protocol, formerly MakerDAO and overseer of the USDS and DAI stablecoins, a B3 semipermanent counterparty hazard standing earlier this month, its archetypal standing of a stablecoin protocol. Sky’s standing assesses the protocol arsenic an entity, with USDS and DAI counted among its liabilities, alternatively than standing either stablecoin. Moody’s classifies B-rated obligations arsenic speculative and taxable to precocious recognition risk.

Reserves Support Dollar Redemptions

SCTC targets reserve assets adjacent to 103% of RLUSD obligations, exceeding the minimum sum associated with the rating, Moody’s detailed. Its dollar-backed stablecoin reserves predominantly comprise highly liquid, short-duration U.S. authorities assets and cash, held chiefly with The Bank of New York Mellon.

Cash astatine a abstracted depository instauration is capped astatine $50 million, supported by different $50 cardinal successful Treasury bills held separately astatine BNY. Ripple and BNY besides announced BNY’s XRP and RLUSD custody expansion connected Oct. 27, extending services to organization token holdings.

Eligible, onboarded institutions tin redeem each RLUSD for its $1 look value, known arsenic redemption astatine par, wrong 2 afloat concern days aft a compliant order. Weekly liquidity accent investigating supports this obligation.

Operational safeguards see backing earlier token issuance, token demolition earlier redemption payments, regular reconciliations, multisignature controls, and autarkic smart-contract reviews. Monthly CPA attestations supply further oversight.

Bankruptcy Risks and Holder Protections

Moody’s identified issuer bankruptcy arsenic a hazard to timely RLUSD redemptions. An automatic stay, which mostly pauses postulation and enforcement actions, could hold payments. Reserve segregation mitigates that risk, though SCTC is not a bankruptcy-remote special-purpose entity and holders deficiency nonstop ownership of the assets.

Stronger ineligible protections could enactment an upgrade, Moody’s said. The bureau expects the GENIUS Act to fortify holder safeguards erstwhile effectual successful 2027, including excluding required reserves from an issuer’s bankruptcy estate.

The appraisal came arsenic RLUSD’s organisation expands. Robinhood’s planned RLUSD integration targets app availability aboriginal this year. Ripple announced entree done Coinbase Prime, Coinbase Exchange, and the Coinbase Retail app connected Oct. 28, with Coinbase Global Exchange availability to follow.