Ripple’s RLUSD Achieves Investment-Grade Rating from Moody’s
The stablecoin secures A2 and P-1 ratings, marking a significant institutional milestone.
1Moody’s Assigns Investment-Grade Rating
Ripple’s RLUSD has officially become the first stablecoin to receive an investment-grade credit rating from Moody’s. The agency assigned an A2 long-term rating and a P-1 short-term rating, which represents the highest possible grade under their specific framework. This assessment validates the quality, transparency, and institutional-grade infrastructure currently supporting the token.
2Rigorous Operational Review Process
Moody’s conducted a comprehensive review of the stablecoin’s operations, focusing on credit quality and reserve liquidity. The assessment scrutinized custody relationships, regulatory oversight, and internal operational controls. Furthermore, the agency evaluated the redemption process, which mandates that eligible institutional holders receive funds at par within two full business days after requests.
3Key Safeguards and Monitoring
The rating report highlighted several critical safeguards, including daily reserve monitoring and weekly liquidity stress tests. Additionally, the issuer performs monthly independent CPA attestations alongside robust cybersecurity controls. These measures are designed to maintain stability, although the report noted that holders currently lack direct ownership of the underlying reserve assets.
4Legal Framework and Future Protections
Moody’s explicitly noted that the issuer is not currently bankruptcy-remote, which remains a factor in the risk profile. However, the upcoming GENIUS Act, scheduled to take effect on January 18, 2027, is expected to provide additional legal protections. Future downgrades remain possible if reserves, liquidity, or operational controls weaken significantly over time.
5Strategic Integration with Robinhood
Ripple has secured multiple integrations for RLUSD, most notably with Robinhood for institutional settlement and treasury management. The stablecoin is currently accessible on Robinhood Chain and Bitstamp by Robinhood. A broader launch within the broker's main application is anticipated later this year, further expanding the token's reach among diverse institutional users.
6Banking and Custody Partnerships
Cross River Bank has partnered with Ripple to integrate RLUSD into its banking platform, facilitating payments and cross-border transfers. Simultaneously, Standard Chartered has launched institutional custody support through its Dubai branch. These collaborations enable customers to utilize the stablecoin for treasury transactions alongside traditional payment services, bridging legacy finance with digital assets.
7Collateralization and Trading Utility
Standard Chartered is actively working with Ripple and LMAX Group to explore the use of RLUSD as collateral for specific trading products. This initiative highlights the growing utility of the stablecoin in sophisticated financial environments. By integrating into trading infrastructure, RLUSD aims to enhance liquidity and efficiency for institutional market participants globally.
8Setting New Institutional Benchmarks
Jack McDonald, SVP of Stablecoins at Ripple, emphasized that independent validation is crucial as the token continues to scale. This rating serves as a benchmark for institutional trust within the volatile stablecoin sector. By aligning with traditional financial standards, Ripple seeks to solidify its position as a reliable provider for enterprise-level digital asset services.
Original article: CryptoPotato — Ripple’s RLUSD Achieves Investment-Grade Rating from Moody’s