Moody's hands Ripple's RLUSD its first investment-grade stablecoin rating

Moody's Ratings has assigned Ripple's dollar-pegged stablecoin RLUSD an A2 long-term deposit rating and a P-1 short-term rating — both investment-grade — according to The Block. Ripple says it is the first stablecoin to earn an investment-grade mark from Moody's.

The agency tied the A2 rating to the credit quality and market value of RLUSD's reserves, reserve coverage, liquidity, redemption arrangements, and the segregation and third-party custody of the reserve, per The Block's account of Moody's assessment. Moody's said the reserve is "predominantly invested in highly liquid, short-duration U.S. government assets and cash," with Standard Custody & Trust Company targeting 103% reserve coverage — above the minimum associated with the rating. The majority of reserves are U.S. Treasury bills, other short-term government assets and cash held at The Bank of New York Mellon, which Moody's rates Aa1. The ratings were assigned under Moody's stablecoin methodology, published in March 2026.

The rating lands days after a separate regulatory win: Ripple received final OCC approval to launch Ripple National Trust Bank, a federally regulated entity authorized to hold RLUSD's segregated reserves, act as collateral trustee for holders, and provide fiduciary digital-asset custody. Moody's also flagged the GENIUS Act, effective January 2027, which it said would shield required reserves from an issuer's bankruptcy estate.

RLUSD launched in December 2024 and now carries a roughly $2.5 billion market capitalization, Ripple said. The company describes it as used mainly within its payment infrastructure and as collateral in Ripple Prime.

Key facts

• Ratings: A2 long-term, P-1 short-term deposit ratings (both investment-grade) — Moody's, via The Block.
• Reserve: majority U.S. T-bills, short-term government assets and cash at BNY Mellon (Aa1-rated); 103% coverage target by Standard Custody & Trust — Moody's.
• RLUSD: launched December 2024; ~$2.5B market cap — Ripple, via The Block.
• Ripple National Trust Bank: final OCC approval granted "earlier this week" (week of Oct. 28, 2026) — The Block.
• GENIUS Act takes effect January 2027 — Moody's.

The real-world read

The rating is a genuine credential — Moody's is an independent third party, not Ripple's PR shop — and the reserve structure it describes (short-dated Treasuries, cash, BNY Mellon custody, over-collateralization) is conservative. But read the quote carefully: the "massive validation" line comes from Jack McDonald, Ripple's own SVP of stablecoins, not from Moody's, and Ripple is also the source for the $2.5B market-cap figure and the "first-ever" claim. Those are interested-party statements. Moody's itself notes the rating can fall if reserve quality, coverage, liquidity or redemption capacity weakens — an investment-grade mark is a snapshot, not a guarantee. Worth noting too: the $2.5B float sits largely inside Ripple's own ecosystem — its payment rails and Ripple Prime — so adoption numbers reflect captive use more than open-market demand. This item rests on a single secondary report; Moody's full rating action wasn't reviewed directly here.

Opinion, and whose

Ripple's Jack McDonald called the rating a "massive validation" for RLUSD — his characterization, as the issuer. Moody's offered no forecast beyond its standard caveat that deterioration in reserves or coverage could trigger a downgrade.

Sources

• The Block (Tier 2, reputable secondary), Oct. 28, 2026 — reported the Moody's ratings, reserve composition, OCC charter, market cap and McDonald quote; itself citing Moody's and Ripple. No Moody's or Ripple primary document was reviewed directly. Not sponsored.

This is news coverage, not financial advice.