Ripple’s RLUSD Stablecoin Achieves Investment-Grade Rating from Moody’s
Ripple’s stablecoin, RLUSD, has reportedly become the first of its kind to secure an investment-grade credit rating from Moody’s, a significant milestone for the digital asset. The renowned credit rating agency assigned RLUSD an A2 long-term rating and a P-1 short-term rating, with P-1 representing the highest possible short-term grade within Moody’s stablecoin assessment framework.
Jack McDonald, Senior Vice President of Stablecoins at Ripple, announced the development on X, formerly Twitter. He stated that the assessment underscores the “quality, transparency, and institutional-grade infrastructure” underpinning the token.
Moody’s, a prominent player in assessing credit risk within traditional financial markets, conducted a comprehensive review of RLUSD’s operations. This evaluation encompassed the credit quality and liquidity of its reserves, custody arrangements, regulatory oversight, and operational controls.
The agency also examined the stablecoin’s redemption process, which mandates that eligible institutional holders receive funds at par within two full business days following a compliant request. The Moody’s report highlighted various safeguards, including daily reserve monitoring, weekly liquidity stress tests, monthly independent attestations from certified public accountants, and robust cybersecurity measures.
However, Moody’s also pointed out that RLUSD holders do not currently possess direct ownership of the reserve assets and that the issuer is not bankruptcy-remote. The upcoming GENIUS Act, slated to take effect on January 18, 2027, is anticipated to introduce additional legal protections. Moody’s cautioned that a downgrade could occur if the stablecoin’s reserves, liquidity, redemption capacity, or operational controls were to weaken.
McDonald expressed his satisfaction with the rating, stating, “As RLUSD continues to grow, this kind of independent validation matters more than ever. Proud to see RLUSD helping set a new benchmark for institutional trust in stablecoins.”
This rating comes at a time when Ripple has been actively securing new integrations for RLUSD. The blockchain company recently announced a partnership with Robinhood, which will see the stablecoin utilized across various functions, including institutional settlement, treasury management, and digital asset services. RLUSD is already accessible on Robinhood Chain and Bitstamp by Robinhood, with a planned launch on Robinhood’s main application later this year.
In parallel, Cross River Bank has partnered with Ripple to integrate RLUSD into its banking platform, enabling customers to leverage the stablecoin for payments, cross-border transfers, and treasury transactions alongside traditional payment services.
Furthermore, Standard Chartered has introduced institutional custody support for RLUSD through its Dubai branch. The bank is also collaborating with Ripple and LMAX Group to explore the potential use of RLUSD as collateral for select trading products.
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