In brief – Moody’s has assigned A2 long-term and P-1 short-term deposit ratings to Ripple USD, the stablecoin issued by Ripple’s Standard Custody & Trust Company. – The agency pointed to reserves held mostly in short-term U.S. government assets and cash, with a target of 103%…
verage of tokens in circulation. – The rating follows final OCC approval for Ripple’s national trust bank, as RLUSD gains backing from firms including Standard Chartered and Mastercard. Moody’s Ratings has assigned an A2 long-term deposit rating and a P-1 short-term deposit rating to Ripple USD (RLUSD), the dollar-backed stablecoin issued by Ripple subsidiary Standard Custody & Trust Company, the agency said on Tuesday
A2 is the sixth-highest long-term grade on Moody’s scale, and P-1 is its top short-term grade. The agency said the ratings reflect the quality of RLUSD’s reserves, which are held mainly in Treasury bills, other short-term U.S. government assets and cash, most of it with custodian BNY. Eligible institutional holders can redeem RLUSD at par within two business days.
Moody’s also flagged gaps in holders’ protection, noting that Standard Custody is not a bankruptcy-remote entity, and RLUSD holders do not currently have a direct ownership interest in the reserves—though the agency said the GENIUS Act, the U.S. stablecoin law due to take effect in 2027, will exclude required reserves from an issuer’s bankruptcy estate. The ratings were requested by the issuer, Moody’s said. The rating came a day after Ripple won final approval from the Office of the Comptroller of the Currency for Ripple National Trust Bank, which will manage RLUSD’s reserves and act as their collateral trustee.