Moody’s Ratings gave Ripple’s U.S. dollar-pegged stablecoin an A2 long-term deposit rating alongside a P-1 short-term deposit rating, both of which are investment-grade designations.
The ratings organization stated that the A2 long-term deposit evaluation stems from its analysis of the market worth and credit soundness of RLUSD reserve holdings, reserve buffers, cash conversion speed, and redemption frameworks.
It additionally highlighted the isolation of the reserves and their safekeeping via external custodians, together with operational, tech-related, legal, compliance, and other structural factors. Moody’s mentioned that the P-1 grade corresponds with the long-term score.
“The Reserve is primarily put into very liquid, near-term American government instruments and cash,” explained Moody’s. “[Standard Custody & Trust Company] aims for a 103% Reserve buffer, which goes beyond the lowest requirement tied to this score.”
Most of the backing assets for RLUSD consist of U.S. Treasury securities, alternative short-duration American public-sector holdings, and fiat money kept at The Bank of New York Mellon (BNY), an institution holding an Aa1 custodial grade, as reported by Moody’s.
The firm additionally pointed out that the GENIUS Act, which becomes active in January 2027, will enhance safeguards for backing assets and stablecoin owners, such as protecting mandatory reserves from the bankruptcy proceedings of an issuer.
These scores were granted under the Moody’s Stablecoin framework released in March 2026. A drop in the creditworthiness or market price of reserve assets, a reduction in buffer coverage, or diminished liquidity or redemption ability might result in reduced grades.
Jack McDonald, Ripple’s senior vice president of stablecoins, noted that RLUSD is the initial stablecoin to attain an investment-grade score from Moody’s, describing the development as a “huge validation” for the initiative.
Earlier in the week, Ripple secured final clearance from the U.S. Office of the Comptroller of the Currency (OCC) to roll out Ripple National Trust Bank. Operating as a federally supervised platform, the national charter is permitted to oversee the separated reserves backing RLUSD, function as a collateral trustee of those reserves for owners of RLUSD, and deliver fiduciary digital asset custodial solutions.
The U.S. dollar stablecoin, introduced in December 2024, has expanded to reach a market valuation of $2.5 billion. Ripple stated it serves primarily as a tool inside Ripple’s settlement network and functions as collateral within Ripple Prime.
Originally published at https://www.theblock.co/news/web3/2026-10-28-moodys-ripple-rlusd-stablecoin-431969.
