Moody's assigns investment grade rating to Ripple's RLUSD stablecoin

Moody's Ratings has assigned Ripple's USD stablecoin, RLUSD, an A2 long-term and P-1 short-term deposit rating, marking the first time a stablecoin has achieved investment grade status under the agency's framework. The rating reflects the quality of reserve assets, liquidity, and redemption arrangements.

RLUSD reserves consist primarily of cash and short-term U.S. government assets, including Treasuries. The Standard Custody & Trust Company, a Ripple unit, aims for a reserve coverage ratio of 103%. The assets are held in custody by BNY, which carries an Aa1 rating.

This rating follows recent regulatory developments, including the Office of the Comptroller of the Currency (OCC) granting Ripple approval to establish a national trust bank. This federal charter allows for the management of segregated reserves and digital asset custody. The investment grade status is expected to facilitate institutional adoption by providing a standardized credit assessment for conservative firms.