Moody's gives Ripple's RLUSD an A2 investment-grade rating

Moody's Ratings has assigned Ripple's dollar stablecoin RLUSD an A2 long-term and a P-1 short-term deposit rating, both in investment-grade territory. The agency published the action on Wednesday, Oct. 28, The Block reports. The ratings cover RLUSD issued by Standard Custody & Trust Company, Ripple's New York-regulated trust company.

What Moody's looked at

Moody's said the A2 grade reflects its view of:

• the credit quality and market value of the reserve assets;
• reserve coverage, liquidity and the redemption arrangements;
• the segregation of the reserve and its custody with third parties;
• operational, technology, legal and regulatory factors.

"The Reserve is predominantly invested in highly liquid, short-duration U.S. government assets and cash," the agency wrote, adding that the issuer targets 103% reserve coverage, above the minimum level linked to the rating. Most of the reserve is held with BNY, which Moody's rates Aa1 as a custodian. The P-1 short-term grade, Moody's highest short-term category, is aligned with the long-term one.

The ratings were assigned under a stablecoin methodology Moody's published in March 2026. A weaker reserve, lower coverage or reduced redemption capacity could push them down.

What the rating does not mean

A deposit rating is an opinion on credit risk, not a guarantee. It does not make RLUSD an insured bank deposit and does not promise the token will hold its peg in every market. A2 is a solid investment grade but sits five notches below Aaa. Ripple executive Jack McDonald called RLUSD the first stablecoin to receive an investment-grade Moody's rating; S&P scores USDC and USDT on a separate stability scale, so the numbers are not directly comparable. Our USDT vs USDC guide covers how the two largest tokens differ.

A busy week for RLUSD

The rating caps several days of news for the roughly $2.5 billion token. Ripple won final OCC approval for a national trust bank that will manage RLUSD reserves, and BNY said it will custody XRP and RLUSD for clients. Moody's also noted that the US GENIUS Act, which takes effect in January 2027, will add protections for stablecoin holders, including keeping required reserves out of an issuer's bankruptcy estate.