Moody’s assigns investment-grade rating to Ripple’s RLUSD stablecoin

The rating, which covers RLUSD obligations issued by Ripple subsidiary Standard Custody & Trust Company, evaluates the token's reserve quality, liquidity, and legal structure. While the A2 grade sits in the investment-grade category, it remains distinct from the agency's top-tier Aaa designation, and the Prime-1 rating represents the highest grade for short-term obligations. These assessments focus on repayment capacity rather than guaranteeing the token's dollar peg or providing insurance equivalent to bank deposits.

Reserve management and institutional ties

Data accompanying the rating indicates a reserve coverage ratio of approximately 103%, with BNY acting as the primary custodian for the underlying cash and short-dated U.S. government securities. This announcement arrives amid a broader push by Ripple to integrate its stablecoin into institutional banking workflows. The company recently expanded its collaboration with BNY and established custody support through Standard Chartered in Dubai. Despite these developments, the rating does not automatically grant RLUSD universal acceptance across the banking sector. Institutions must still navigate separate internal eligibility and operational approvals before integrating the asset into payment or margin systems.

Moody’s methodology for this assessment draws on traditional credit analysis adapted for the specific risks of stablecoin issuers. While S&P Global Ratings has previously issued stability scores for USDC and USDT, those metrics utilize a different framework than Moody’s deposit-based ratings, making direct comparisons between the assets incomplete. Ripple has not yet disclosed how this credit assessment will impact specific transaction volumes or future redemption activity.