Moody’s assigns A2 and P-1 ratings to Ripple USD
Key points
- Moody’s Ratings assigned Ripple USD (RLUSD) an A2 long-term and P-1 short-term deposit rating.
- RLUSD reserves target 103% coverage, with most assets held in US Treasury bills and cash.
- The ratings cover RLUSD issued by Standard Custody & Trust Company on the XRP Ledger and Ethereum.
Moody’s Ratings assigned Ripple USD (RLUSD) an A2 long-term and P-1 short-term deposit rating, marking its first ratings assessment of the stablecoin.
The ratings apply exclusively to RLUSD issued by Standard Custody & Trust Company on the XRP Ledger (XRP) and Ethereum (ETH).
Moody’s based its assessment on reserve quality, liquidity, redemption arrangements, asset segregation and operational safeguards.
SCTC targets 103% reserve coverage, exceeding the minimum level associated with RLUSD’s ratings.
Most reserve assets comprise US Treasury bills, short-term government securities and cash, held primarily with Bank of New York Mellon (NYSE:BK).
Eligible institutional holders can redeem RLUSD at par within two full business days (T+2) after submitting compliant redemption orders.
The forthcoming GENIUS Act, expected to take effect in 2027, could strengthen reserve protections and stablecoin holder claims.
The ratings establish Moody’s initial credit assessment of RLUSD, with future changes dependent on reserve quality, redemption capacity and regulatory safeguards.
Frequently asked questions
More from Crypto
TRM Labs links North Korea to $6.36 billion Binance hack
CoinDCX restricts futures trading after liquidity disruption
Uniswap Labs launches TJAR for onchain fee conversion
Avail launches ShieldTX to protect Hyperliquid traders
Binance suspends withdrawals after $6.3 billion security incident
HTX exits UK after settlement with financial regulator
