Moody's Assigns A2 Rating to Ripple's $2.6 Billion Stablecoin 'RLUSD'

Moody's Assigns A2 Rating to Ripple's RLUSD

Moody's Ratings, a major credit rating agency in the United States, announced that it has assigned a long-term credit rating of "A2" and a short-term top rating of "P-1" to Ripple USD (RLUSD), a dollar-pegged stablecoin issued by a subsidiary of Ripple.

Big news heading into @RippleSwell: the @USOCC has granted final approval for Ripple National Trust Bank. This gives Ripple a federally supervised platform to support $RLUSD and provide digital asset custody to enterprises. We've always said crypto and banks work better together --- this is what that looks like. Real innovation, real accountability, federal oversight. The revolution isn't happening outside the system. It's happening from within it.

--- Brad Garlinghouse (@bgarlinghouse) October 26, 2026

The high rating from Moody's is attributed to the collateral structure and high liquidity of RLUSD. The reserve assets of RLUSD are primarily composed of high-quality assets such as short-term U.S. Treasury securities and cash, and it aims to maintain a coverage ratio exceeding the typical requirement of 103% against the issuance balance.

Additionally, to enhance asset management transparency, BNY (formerly known as Bank of New York Mellon) has been appointed as the primary custodian, and strict risk management measures have been implemented, including limiting cash deposits with private banks to $50 million (approximately ¥7.88 billion). A mechanism is in place for qualified institutional investors to convert to U.S. dollars within two business days, which significantly supports the P-1 rating.

Approval of Bank Establishment by OCC and Strengthening of Federal Regulatory Framework

The announcement of this rating comes immediately after the OCC (Office of the Comptroller of the Currency) granted final approval for the establishment of RNTB (Ripple National Trust Bank). The newly established RNTB will function as the collateral trustee for RLUSD's reserve assets, further solidifying the custody framework.

In addition to the oversight by Standard Custody & Trust, the issuer, the combination of bank functions under federal regulation creates a multi-layered compliance structure that allows institutional investors to enter with confidence.

Remaining Legal Challenges and Expectations for the 2027 GENIUS Act

While gaining high reliability, Moody's has also pointed out legal challenges that could hinder further rating improvements. Under the current framework, it cannot be definitively stated that the issuer is in a state of complete bankruptcy isolation from the entire group, and the lack of direct legal claims by holders against the reserve assets is a concern.

However, the upcoming U.S. stablecoin-related legislation, the GENIUS Act, expected to be enacted in 2027, is anticipated to introduce provisions that protect reserve assets from the issuer's bankruptcy estate. If legal separation is clarified, it could lead to future upgrades in credit ratings.

Growth to $2.6 Billion Scale and Expansion of Ecosystem for Institutional Investors

Currently, the market capitalization of RLUSD has reached approximately $2.58 billion to $2.6 billion (about ¥406.78 billion to ¥410 billion), steadily increasing its presence as one of the top stablecoins by market cap. Not limited to individual investors, collaborations with major financial institutions are progressing, such as custody services provided by Standard Chartered Bank and considerations for payment infrastructure with the Gemini Credit Card.

The activation of on-chain activity on the XRP Ledger (XRPL) and Ethereum is expected to have long-term positive effects on the overall ecosystem and the value of XRP. With federal regulation and endorsement from rating agencies, RLUSD has taken a significant step as a new bridge connecting traditional finance and Web3.

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