Moody’s Ratings has assigned Ripple’s RLUSD stablecoin an A2 long-term and P-1 short-term rating, marking the first time the agency has issued a formal credit rating for a cryptocurrency stablecoin.
The ratings apply specifically to RLUSD tokens issued on the XRP Ledger and Ethereum by Standard Custody & Trust Company, a subsidiary of Ripple. The P-1 rating is Moody’s highest short-term rating and indicates a strong capacity to meet short-term financial obligations. This could help institutions assess the risks of using RLUSD for payments, settlement, and collateral.
More good news for $RLUSD this week – @moodysratings has assigned RLUSD an A2 long-term rating and P-1 short-term rating, the highest possible short-term rating under its new stablecoin framework.
TL;DR: RLUSD is the first stablecoin to have ever received an investment-grade Moody’s rating. This is one of the most respected independent credit rating agencies in the world, and a massive validation of the quality, transparency and institutional-grade infrastructure behind RLUSD.
Moody’s assessed everything from the credit quality and liquidity of @Ripple’s reserves to redemption arrangements, custody relationships, regulatory oversight, and operational controls in their rigorous methodology.
As RLUSD continues to grow, this kind of independent validation matters more than ever. Moody’s has helped set the standard for assessing credit quality and risk across traditional finance for decades, and bringing that same level of assessment to stablecoins themselves is a major step forward for the industry.
Proud to see RLUSD helping set a new benchmark for institutional trust in stablecoins. https://t.co/Zv7wXEbUMk
— Jack McDonald (@_JackMcDonald_) October 28, 2026
Moody’s based its decision on RLUSD’s conservative reserve structure. The stablecoin has a 103% reserve coverage ratio, with its reserves backed almost entirely by cash and short-term United States Treasury bills. The Aa1-rated Bank of New York Mellon holds these assets separately.
The agency also considered RLUSD’s operational controls, including the requirement to burn tokens before processing redemptions and verify reserves daily. The rating comes as Ripple has also secured regulatory approval from the Office of the Comptroller of the Currency (OCC) to launch the Ripple National Trust Bank, which will directly manage these segregated reserves.
Read also: Ripple Backs SEC Crypto Rules, Seeks Clearer Token Status
Moody’s rating could help RLUSD gain corporate treasury adoption
A formal credit rating could change how traditional financial institutions assess stablecoins. Many large corporations have been reluctant to use stablecoins for cross-border payments because their compliance teams lack standardized measures for evaluating the associated risks.
X user CBM highlighted this, noting that Moody’s A2 and P-1 ratings provide the kind of assurance institutions need when assessing a stablecoin. CBM also pointed out that reserves held in cash and US Treasury bills align with the risk preferences of large institutional investors.
@Cointelegraph An A2 and P-1 rating from Moody’s is a real signal for institutions, reserves in Treasurys and cash is exactly what big money wants to see
— CBM (@CryptoBigMartin) October 28, 2026
Assessing RLUSD using traditional financial rating standards could make it easier for corporate treasurers to evaluate the stablecoin. This may reduce one of the barriers preventing companies from using digital assets for payments and treasury operations.
Another user, Clay, noted that A2 is not Moody’s highest long-term rating. According to Clay, this suggests that the rating shows operational risks associated with the issuer, rather than the quality of the underlying government securities.
@Cointelegraph an a2 from moody’s on a stablecoin backed mostly by treasurys and cash says the reserves are boring, which is the point.
a2 isn’t top tier though, so the grade is pricing the issuer, not the bills.
ratings like this are what get stablecoins onto corporate treasury desks.
— Clay (@williamclay) October 28, 2026
Clay added that a predictable and straightforward reserve structure is precisely what stablecoins need to gain acceptance among corporate treasury teams.
Read also: Ripple Wants RLUSD to Do More Than Move Money
RLUSD Rating highlights the link between stablecoins and US government debt
RLUSD’s rating also shows how stablecoin companies can issue digital tokens backed by US dollars and earn income from the Treasury bills they hold as reserves.
X user Danny observed that a private stablecoin backed by US Treasury bills can receive a stronger credit rating than the government’s own budgetary position.
@Cointelegraph A stablecoin backed by Treasurys now has a better rating than the Treasury’s budget would get.
— Danny (@realDannyLucas_) October 28, 2026
The observation highlights the growing role of stablecoin issuers in global liquidity management. These companies buy US government debt, holding Treasury bills to back their tokens. This creates demand for government securities while providing stablecoin issuers with assets to support their financial obligations.
RLUSD remains tied to the US dollar and the financial system supporting it. Its rating therefore highlights how stablecoins can combine blockchain-based payments with traditional financial assets, potentially making digital dollar transactions more attractive to institutional users.
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