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Moody’s Ratings has assigned Ripple’s RLUSD stablecoin A2 long-term and P-1 short-term deposit ratings, citing the quality of its reserves and redemption arrangements.
According to Moody’s, the assessment follows its stablecoin rating methodology published in March 2026. The ratings cover RLUSD obligations issued by Standard Custody & Trust Company, a New York-regulated Ripple subsidiary. The decision follows Ripple’s final U.S. banking approval and an expansion of its partnership with BNY, the stablecoin’s primary reserve custodian.
Moody’s assessed the credit quality and market value of assets backing RLUSD, as well as the issuer’s ability to meet redemptions. It also considered how the company separates reserves from other assets, where it holds them and the operational and legal risks involved. The A2 grade falls within Moody’s investment-grade range, while P-1 represents its highest short-term rating. The two ratings measure credit risk over different periods.
According to the agency, RLUSD’s reserves consist mainly of cash and short-term U.S. government securities, including Treasury bills. Standard Custody targets reserve coverage of 103%, above the minimum level associated with the rating.
The 103% figure describes the issuer’s target, not a guarantee that coverage will remain unchanged. Moody’s could lower the ratings if reserve quality, coverage, liquidity or redemption arrangements weaken. Its assessment also considers the custody arrangements for reserves held separately from the issuer’s other assets.
The rating follows the October 26 announcement that the Office of the Comptroller of the Currency had given final approval to establish Ripple National Trust Bank. Ripple said the federally supervised institution can manage RLUSD’s segregated reserves and serve as collateral trustee for token holders.
Its approved business plan also includes fiduciary digital asset custody services once the bank opens. The approval completes a process that began with a conditional decision in December 2025.
However, Ripple National Trust Bank will not replace RLUSD’s issuer. Standard Custody & Trust Company will continue issuing the stablecoin under supervision from the New York State Department of Financial Services.
The trust bank will add federal oversight to Ripple’s existing regulatory structure. The Moody’s rating addresses RLUSD’s credit and reserve arrangements; it does not make the token a federally insured bank deposit or guarantee its dollar peg.
Meanwhile, BNY expanded its partnership with Ripple on October 27 by adding XRP and RLUSD support to its digital asset custody platform. The bank already serves as the primary custodian of RLUSD reserve assets. Its expanded service allows eligible institutional clients to hold and transfer the two digital assets through BNY’s platform, separate from the bank’s existing reserve custody role. Moody’s identifies BNY as an Aa1-rated custodian.
The companies also plan to let eligible BNY clients mint and redeem RLUSD directly through the bank, subject to final BNY and regulatory approvals. They are exploring tokenized trade finance with working-capital platform C2FO, although they have not announced a launch date. BNY put RLUSD’s market capitalization at approximately USD 2.5 billion, following its December 2024 launch. Ripple uses the token in payment services and as collateral through Ripple Prime.
Ripple executive Jack McDonald called the rating the first investment-grade assessment Moody’s has assigned to a stablecoin, describing it as a “massive validation.” The company has not identified new RLUSD transaction volumes linked to the rating, while BNY’s separate custody and issuance plans remain subject to their stated approval requirements.
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