Moody's assigns A2 and P-1 credit ratings to Ripple's RLUSD stablecoin
Moody's has assigned an A2 long-term credit rating and a P-1 short-term rating to Ripple USD (RLUSD), the company's U.S. dollar-backed stablecoin. The assessment considered the quality of reserves, token redemption terms and risks to holders in the event of the issuer's bankruptcy.
On October 27, 2026, the agency published its assessment of RLUSD, issued by Standard Custody & Trust Company (SCTC), a Ripple subsidiary. The ratings apply exclusively to tokens issued directly on the XRP Ledger and Ethereum networks.
The A2 rating indicates low credit risk, while P-1 represents the highest short-term rating assigned by Moody's. However, the agency emphasized that the ratings do not guarantee the token will consistently maintain its $1 value.
According to DefiLlama, approximately $2.57 billion worth of RLUSD was in circulation as of October 26.
Moody's assesses RLUSD reserves and redemption risks
The stablecoin is primarily backed by liquid, short-term U.S. government securities and cash. SCTC aims to maintain reserve coverage of 103%, exceeding the minimum requirements considered by the agency.
Most of the assets are held at BNY. Cash held at a separate depository institution is capped at $50 million and is additionally backed by an equivalent amount of U.S. Treasury bills held in a segregated account.
Under regulatory requirements, SCTC must redeem RLUSD at par for verified institutional clients within two full business days of receiving a valid request.
Moody's also identified daily reserve reconciliations, independent monthly reserve attestations and a mechanism for burning tokens before funds are paid out as additional factors supporting the ratings.
However, the agency highlighted legal limitations. Although reserves are segregated from the issuer's own assets, RLUSD holders do not yet have direct ownership rights over the collateral. If SCTC becomes insolvent, the redemption process could be delayed.
Stronger legal protections for holders could lead to rating upgrades. Conversely, deterioration in reserve quality, redemption problems or serious cybersecurity breaches could trigger downgrades.
Ripple expands infrastructure for corporate clients
Ripple has also expanded the capabilities of its Treasury platform, designed for corporate liquidity and payment management. The update combines artificial intelligence-powered tools, transaction processing and digital asset infrastructure.
According to the company, the new features allow corporate clients to manage funds around the clock without being restricted by traditional banking hours. The platform focuses on automating treasury operations and accelerating settlements.
Earlier, we reported that Ripple received final approval from a U.S. regulator to establish a national trust bank. The new entity will manage segregated RLUSD reserves and act as trustee of the collateral on behalf of stablecoin holders.
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