Ripple RLUSD Becomes First Stablecoin to Earn Moody's Investment-Grade Rating as Coinbase Deal and Bank Approval Add Momentum

Moody's Ratings has assigned A2 long-term and P-1 short-term deposit ratings to Ripple USD, the dollar-backed stablecoin issued by Ripple subsidiary Standard Custody and Trust Company, marking the first investment-grade Moody's rating ever given to a stablecoin. The agency cited the quality of RLUSD's reserve assets, held primarily in Treasury bills, other short-term U.S. government securities, and cash, most of it custodied at BNY, with Ripple targeting 103% coverage of tokens in circulation. Moody's noted that stablecoin holders currently have no direct ownership interest in those reserves, and flagged bankruptcy risk as a qualification in the assessment.

The rating arrived one day after Ripple received final approval from the U.S. Office of the Comptroller of the Currency for a national trust bank charter, a pair of milestones that Ripple's stablecoins chief described as setting a new benchmark for institutional trust. RLUSD, which carries a market capitalization of approximately $2.6 billion, has also gained backing from firms including Standard Chartered and Mastercard.

Also on Wednesday, Ripple announced that RLUSD is now available on Coinbase's retail and institutional trading platforms and on Coinbase's Base blockchain, expanding distribution through the largest U.S. crypto exchange. Ripple's head of stablecoins called the combined developments a new standard for the asset class.