Key Takeaways
- Moody’s assigned RLUSD A2 long-term and P-1 short-term deposit scores a day after Ripple’s belief financial institution approval.
- The issuer targets 103% reserve protection, primarily in authorities property.
- Issuer chapter may delay redemptions past two enterprise days.
RLUSD Receives A2 and P-1 Rankings
Moody’s Rankings assigned RLUSD A2 long-term and P-1 short-term deposit scores on Oct. 27, assessing its backing and redemption framework. The Moody’s RLUSD deposit scores apply to stablecoins natively issued on the XRP Ledger and Ethereum by Commonplace Custody & Belief Firm (SCTC), Ripple’s New York-regulated belief firm.
The ranking got here a day after Ripple gained closing approval from the U.S. Workplace of the Comptroller of the Forex (OCC) for Ripple Nationwide Belief Financial institution, disclosed Oct. 26. The financial institution’s authorized actions embody managing RLUSD reserves and serving as collateral trustee for holders, whereas SCTC stays the issuer.
Funding-grade scores point out comparatively low credit score threat. A2 falls inside Moody’s upper-medium-grade class, indicating low credit score threat. P-1 is its highest short-term ranking, reflecting a superior capability to fulfill short-term obligations.
Jack McDonald, Ripple’s senior vp of stablecoins, mentioned RLUSD’s Moody’s scores in an Oct. 27 submit on X stating:
“RLUSD is the primary stablecoin to have ever acquired an investment-grade Moody’s ranking.”
Bluechip, an unbiased stablecoin ranking company, beforehand assigned RLUSD an A ranking and first-place stablecoin rating on July 18, 2025. That evaluation used Bluechip’s stablecoin threat framework. Moody’s assigned deposit scores below its separate methodology. Ripple’s first-ever declare particularly considerations an investment-grade ranking from Moody’s.
Moody’s gave Sky Protocol, previously MakerDAO and overseer of the USDS and DAI stablecoins, a B3 long-term counterparty threat ranking earlier this month, its first ranking of a stablecoin protocol. Sky’s ranking assesses the protocol as an entity, with USDS and DAI counted amongst its liabilities, quite than ranking both stablecoin. Moody’s classifies B-rated obligations as speculative and topic to excessive credit score threat.
Reserves Help Greenback Redemptions
SCTC targets reserve property equal to 103% of RLUSD obligations, exceeding the minimal protection related to the ranking, Moody’s detailed. Its dollar-backed stablecoin reserves predominantly comprise extremely liquid, short-duration U.S. authorities property and money, held primarily with The Financial institution of New York Mellon.
Money at a separate depository establishment is capped at $50 million, supported by one other $50 million in Treasury payments held individually at BNY. Ripple and BNY additionally introduced BNY’s XRP and RLUSD custody growth on Oct. 27, extending providers to institutional token holdings.
Eligible, onboarded establishments can redeem every RLUSD for its $1 face worth, often known as redemption at par, inside two full enterprise days after a compliant order. Weekly liquidity stress testing helps this obligation.
Operational safeguards embody funding earlier than token issuance, token destruction earlier than redemption funds, every day reconciliations, multisignature controls, and unbiased smart-contract critiques. Month-to-month CPA attestations present additional oversight.
Chapter Dangers and Holder Protections
Moody’s recognized issuer chapter as a threat to well timed RLUSD redemptions. An computerized keep, which usually pauses assortment and enforcement actions, may delay funds. Reserve segregation mitigates that threat, though SCTC shouldn’t be a bankruptcy-remote special-purpose entity and holders lack direct possession of the property.
Stronger authorized protections may help an improve, Moody’s stated. The company expects the GENIUS Act to strengthen holder safeguards when efficient in 2027, together with excluding required reserves from an issuer’s chapter property.
The evaluation got here as RLUSD’s distribution expands. Robinhood’s deliberate RLUSD integration targets app availability later this yr. Ripple introduced entry via Coinbase Prime, Coinbase Change, and the Coinbase Retail app on Oct. 28, with Coinbase International Change availability to comply with.
