Ripple’s RLUSD secures A2 investment-grade rating from Moody’s

Moody’s has assigned Ripple’s RLUSD stablecoin an A2 long-term and Prime-1 short-term deposit rating, bringing its new credit assessment framework to a dollar-backed token issued on the XRP Ledger and Ethereum. Summary Moody’s assigned RLUSD an A2 long-term rating and its highest short-term grade, P-1. The rating covers RLUSD issued by Standard Custody on XRP Ledger and Ethereum. Reports describe 103% reserve coverage, with BNY serving as the primary reserve custodian. RLUSD’s rating coincides with new banking relationships and approximately $2.5 billion in circulating supply. S&P has assessed USDC and USDT, but its stablecoin scores differ from Moody’s deposit ratings. According to a Moody’s rating notice and comments from Ripple executive Jack McDonald on October 28, the assessment covers RLUSD obligations issued by Standard Custody & Trust Company, Ripple’s New York-regulated subsidiary. McDonald described RLUSD as the first stablecoin to receive an investment-grade Moody’s rating, although the agency’s publicly accessible notice does not provide its full analytical rationale. Meanwhile, the announcement arrived during Ripple’s Swell conference week, when the company was...