“Proud to see RLUSD helping set a new benchmark for institutional trust in stablecoins,” said a Ripple exec.
Ripple’s RLUSD has reportedly become the first stablecoin to receive an investment-grade credit rating from Moody’s. The agency assigned RLUSD an A2 long-term rating and a P-1 short-term rating. P-1 is the highest possible short-term grade under Moody’s stablecoin framework.
Jack McDonald, SVP of Stablecoins at Ripple, announced the development in a post on X. He said the assessment validates the “quality, transparency, and institutional-grade infrastructure” supporting the token.
Moody’s Credit Rating
Moody’s is a major credit rating agency known for assessing credit risk across traditional financial markets. It reviewed several aspects of the stablecoin’s operations. These included the credit quality and liquidity of its reserves, custody relationships, regulatory oversight, and operational controls.
Moody’s also assessed the stablecoin’s redemption process, which requires eligible institutional holders to receive funds at par within two full business days after a compliant request. The report highlighted safeguards such as daily reserve monitoring, weekly liquidity stress tests, monthly independent CPA attestations, and cybersecurity controls.
However, it noted that RLUSD holders do not currently have direct ownership of the reserve assets and that the issuer is not bankruptcy-remote. The GENIUS Act, which takes effect on January 18, 2027, is expected to provide additional legal protections. Moody’s said weaker reserves, liquidity, redemption capacity, or operational controls could lead to a downgrade.
McDonald said,
“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.”
Expansion
The rating arrives as Ripple has managed to secure a slew of new integrations for RLUSD this month. The blockchain company recently partnered with Robinhood to use the stablecoin across several areas, such as institutional settlement, treasury management, and digital asset services. RLUSD is already available on Robinhood Chain and Bitstamp by Robinhood. A launch in the broker’s main app is expected later this year.
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Cross River Bank also teamed up with Ripple to integrate RLUSD into its banking platform. The move will let customers use the stablecoin for payments, cross-border transfers, and treasury transactions alongside traditional payment services.
Meanwhile, Standard Chartered launched institutional custody support for the token through its Dubai branch. The bank is also working with Ripple and LMAX Group to explore using RLUSD as collateral for selected trading products.
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