Ripple’s RLUSD Secures Historic Moody’s Investment-Grade Rating
Ripple achieves a major milestone as its stablecoin receives top-tier credit ratings following bank approval.
1Historic Credit Rating Achievement
Ripple’s RLUSD stablecoin has officially become the first to receive an investment-grade rating from Moody’s. The agency assigned A2 long-term and P-1 short-term deposit ratings on October 27, 2026. This assessment evaluates the backing and redemption framework for tokens issued natively on the XRP Ledger and Ethereum by Standard Custody Trust Company.
2Regulatory Trust Bank Milestone
The rating followed Ripple’s final approval from the U.S. Office of the Comptroller of the Currency for its national trust bank on October 26. This new entity manages RLUSD reserves and acts as a collateral trustee for holders. Standard Custody Trust Company remains the primary issuer under this regulated institutional structure.
3Reserve Coverage and Strategy
The issuer maintains a target of 103% reserve coverage, primarily held in highly liquid U.S. government assets and cash. These reserves are predominantly managed by The Bank of New York Mellon. This strategy exceeds the minimum coverage requirements typically associated with such credit ratings, providing a buffer for institutional token holders.
4Institutional Redemption Framework
Onboarded institutions can redeem RLUSD at a $1 face value within two full business days of a compliant order. This process is supported by weekly liquidity stress testing to ensure stability. Operational safeguards include pre-funding issuance, token destruction protocols, daily reconciliations, multisignature controls, and independent smart-contract reviews for all transactions.
5Bankruptcy Risk and Mitigation
Moody’s identified issuer bankruptcy as a potential risk to timely redemptions, noting that an automatic stay could delay payments. While reserve segregation helps mitigate this, Standard Custody Trust Company is not a bankruptcy-remote entity. Holders currently lack direct ownership of the underlying assets, which remains a key factor in the assessment.
6Future Legal Protections
The rating agency indicated that stronger legal protections could support a future credit upgrade. Specifically, the expected implementation of the GENIUS Act in 2027 is projected to strengthen holder safeguards. This legislation aims to exclude required reserves from an issuer’s bankruptcy estate, potentially reducing the risks associated with insolvency proceedings.
7Comparative Market Positioning
This rating distinguishes RLUSD from other protocols like Sky, which received a B3 speculative-grade rating earlier in October. Unlike Sky’s protocol-level assessment, Moody’s rated RLUSD as a deposit obligation. Previously, Bluechip assigned an A rating to RLUSD in July 2025, though Moody’s used its own distinct methodology for this latest evaluation.
8Expanding Distribution Channels
Ripple is actively expanding RLUSD distribution across major platforms. Coinbase announced access through its Prime, Exchange, and Retail app services on October 28. Additionally, Robinhood plans to integrate the stablecoin later this year. These partnerships reflect growing institutional and retail adoption as the asset gains regulatory and credit-based validation.
Original article: Bitcoin News — Ripple’s RLUSD Secures Historic Moody’s Investment-Grade Rating