Ripple’s stablecoin, RLUSD, has achieved a historic milestone by becoming the first stablecoin to receive an investment-grade rating from Moody’s Ratings. The rating agency assigned RLUSD an A2 long-term rating and a P-1 short-term rating, the highest possible short-term rating under its new stablecoin framework. Moody’s assessment focused on Ripple’s reserve quality, liquidity, redemption mechanisms, custody arrangements, regulatory oversight, and operational controls. This rating is expected to boost confidence among banks, payment providers, and other financial institutions.
Moody’s highlighted that the forthcoming GENIUS Act, set to take effect in 2027, will provide additional statutory protections for reserve assets and stablecoin holder claims. This includes the exclusion of required reserves from the issuer’s bankruptcy estate. The rating follows Ripple’s recent collaboration with Robinhood to expand RLUSD’s institutional settlement use, potentially increasing demand beyond crypto trading.
RLUSD’s market capitalization has doubled this year, rising from $1.28 billion to $2.57 billion. Despite this growth, it still accounts for less than 1% of the $303 billion stablecoin market, indicating substantial room for expansion. Competing stablecoins USD1 and PayPalUSD have retreated from their respective peaks. Rand Group partner Richard Seiler also noted Ripple’s final approval from the Office of the Comptroller of the Currency (OCC) for its national trust bank, strengthening its regulated financial infrastructure.