Moody’s Ratings assigned Ripple’s U.S. dollar-pegged stablecoin RLUSD an A2 long-term deposit rating and a P-1 short-term deposit rating. The investment-grade ratings reflect the credit quality, market value and liquidity of the stablecoin’s reserves, alongside its redemption arrangements.
The decision came in the same week that Ripple received final regulatory approval to establish a national trust bank in the United States. As the company expands RLUSD’s use in institutional payments and collateral transactions, it is also preparing to develop its reserve management and custody services under federal supervision.
Targeting 103% Reserve Coverage
According to Moody’s assessment, RLUSD’s reserves primarily consist of highly liquid, short-duration U.S. government assets and cash. The agency examined the quality of those assets, the extent to which they cover outstanding stablecoins and the mechanisms that allow users to redeem their tokens for dollars.
RLUSD’s issuer, Standard Custody & Trust Company, targets a reserve coverage ratio of 103%. This means holding $103 in reserves for every $100 of RLUSD in circulation; according to Moody’s, the target exceeds the minimum coverage level associated with the rating.
The majority of the reserves consist of U.S. Treasury bills, other short-term U.S. government assets and cash. These assets are held with the Bank of New York Mellon (BNY), which Moody’s rates Aa1.
The assessment also considered the segregation of reserves and their custody with third parties. Moody’s examined operational and technological risks, the legal structure, the regulatory framework and other factors that could affect the stablecoin’s operations.
The A2 long-term rating falls within the investment-grade category, while P-1 represents the highest level on Moody’s short-term rating scale. The two ratings assess RLUSD-related obligations across different time horizons.
Ripple Says RLUSD Is the First Stablecoin to Receive the Rating
Jack McDonald, Ripple’s senior vice president of stablecoins, said RLUSD was the first stablecoin to receive an investment-grade rating from Moody’s. McDonald described the decision as a significant validation of the project.
The ratings were assigned under Moody’s stablecoin methodology, published in March 2026. Under this framework, both the current condition of reserves and changes that could affect redemption capacity are relevant to the future direction of the ratings.
Moody’s said deterioration in the credit quality or market value of reserve assets could lead to a downgrade. A decline in reserve coverage, weaker liquidity or reduced redemption capacity were also listed as factors that could put downward pressure on the ratings.
The agency also highlighted protections envisioned under the GENIUS Act. According to Moody’s assessment, the legislation, expected to take effect in January 2027, will strengthen protections for stablecoin holders and reserve assets, including provisions shielding required reserves from an issuer’s bankruptcy estate.
OCC Approval Expands Federal Oversight
Ripple announced on October 26 that it had received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish Ripple National Trust Bank. The bank’s authorized activities include managing the segregated reserves backing RLUSD, acting as collateral trustee for those reserves on behalf of token holders and providing digital asset custody services.
RLUSD will continue to be issued by Standard Custody & Trust Company, which is regulated by the New York State Department of Financial Services. Federal OCC supervision of reserve management and custody activities will therefore complement the stablecoin’s existing state-level regulatory framework.
Launched in December 2024, RLUSD has reached a market capitalization of $2.5 billion, according to Ripple. The stablecoin is used within the company’s payments infrastructure and as collateral in Ripple Prime; Ripple also publishes monthly independent third-party attestations covering its circulating supply and reserve assets.
