Moody's gives Ripple's RLUSD stablecoin an A2 rating: what it means

What happened. Moody's Ratings assigned RLUSD an A2 long-term and a P-1 short-term rating. It looked at the reserves, their coverage, liquidity, redemption rules, third-party custody, and operational, tech and legal risks. Moody's disclosure says the rating was solicited, meaning the issuer asked for it.

What backs it. Moody's says the reserves sit mostly in short-term US government assets and cash. The issuer targets 103% coverage, so about $1.03 of assets for each $1 of tokens. Most reserves are held at BNY. A small cash slice sits at another bank, capped at $50 million, and is backed by another $50 million of Treasury bills in a separate BNY account.

Getting dollars back. Approved institutional holders can redeem at par within two business days (T+2). Regular people usually do not redeem with the issuer directly; they sell on an exchange. Moody's notes the timeline could be longer if the issuer went bankrupt.

Weak spots. The issuer is not a bankruptcy-remote entity, and RLUSD holders have no direct ownership claim on the reserves today. Moody's says segregated reserves and New York Department of Financial Services oversight reduce these risks. The GENIUS Act, in force from 2027, is set to keep required reserves out of an issuer's bankruptcy estate.

How to read A2. On Moody's scale A2 is investment grade, but not the top: that is Aaa. P-1 is the best short-term level. crypto.news points out that a rating does not guarantee redemption and does not turn the token into an insured deposit. It also notes S&P scores USDC and USDT on a different scale, so the grades are not directly comparable.

Our take. The rating does not change the price and does not make RLUSD better than other stablecoins for a regular user. It matters for institutions that need a clear risk label. This is not advice to buy or sell anything.

Confirmed facts

• On 27 October 2026 Moody's assigned RLUSD an A2 long-term and P-1 short-term deposit rating.^[1][2]
• RLUSD is issued by Standard Custody & Trust Company, LLC, a Ripple Labs subsidiary. The rating applies only to RLUSD it issues on the XRP Ledger and Ethereum.^[1]
• Reserves are mostly liquid short-term US government assets and cash. The issuer targets 103% coverage.^[1]
• BNY is the main reserve custodian. Cash at another bank is capped at $50 million and backed by $50 million of Treasury bills in a separate BNY account.^[1]
• Approved institutional holders can redeem at par within two business days (T+2).^[1]
• The issuer is not bankruptcy-remote and holders have no direct ownership interest in the reserves. The GENIUS Act, in effect in 2027, is set to exclude required reserves from the issuer's bankruptcy estate.^[1]
• A2 is investment grade, but Moody's top long-term grade is Aaa. BNY put RLUSD in circulation at about $2.5 billion.^[2]

Implications

• Our readingInstitutions may find it easier to fit RLUSD into their risk rules now that it has a rating from a familiar agency.
• ConfirmedMoody's could raise the rating if the GENIUS Act and other steps strengthen holder protection.
• Our readingOther big stablecoin issuers may seek a similar rating so they do not fall behind.

Still unknown

• Whether Circle or Tether will ask Moody's for a rating under the same method.
• Whether demand for RLUSD changes after the rating: Ripple has not shared new volumes.
• When Moody's publishes its full new issue report and the next review date.

Who it affects

United States, Worldwide. People holding stablecoins, following XRP and Ripple, and anyone watching banks move into crypto

Sources

1. Moody's Ratings: Moody's assigns A2/P-1 deposit ratings to Ripple USD (RLUSD) October 27, 2026 · official
2. crypto.news: Ripple's RLUSD secures A2 investment-grade rating from Moody's October 28, 2026 · media