Moody’s Gives RLUSD an A2 Investment Rating and P-1

Moody’s Ratings assigned Ripple USD, or RLUSD, a long-term deposit rating of A2 and a short-term rating of P-1. This is important for institutional clients. The decision came a day after Ripple received final approval to create a national trust bank in the United States.

RLUSD is issued by Ripple’s subsidiary, Standard Custody & Trust Company. The stablecoin operates on the Ethereum and XRP Ledger networks. According to Ripple’s transparency report, as of October 22, 2026, there were $2.3828 billion RLUSD in circulation, while reserves totaled $2.5280 billion. That is roughly 106.1% coverage.

Why is this rating important for RLUSD?

Moody’s did not just rate the token. It effectively placed it alongside instruments where the market looks at issuer quality, liquidity, and the ability to meet obligations. For a stablecoin, that is a strong signal.

The timing also matters here. Ripple received final approval for a national trust bank in the U.S., and the rating appeared the very next day. For large capital, this sounds like an additional check on business maturity. That is exactly what institutions are waiting for.

In practice, this status could help RLUSD work with funds, custodians, and payment partners. But Moody’s did not give it a blank check. The focus remains on reserves, redemption structure, and legal risks. And that is not all.

What did Moody’s see in RLUSD’s structure?

The agency paid attention not only to the reserve figures. In risk analysis, the rules for access to those reserves matter too, as does who can redeem the token directly. For the market, that is no small detail.

According to the data cited in the rating discussion, direct RLUSD redemption is available only to qualified institutional clients, and settlement follows a T+2 cycle. Moody’s also separately noted that Standard Custody is not bankruptcy-remote. In other words, in a stress scenario, the protection structure is not ideal.

In other words, the rating is strong, but not unconditional. It recognizes the quality of Ripple’s model, while still leaving open the question of how quickly and without disputes RLUSD holders can access the reserves.

For stablecoins, this is a key issue. It is trust in redemption that makes them useful. Without it, even a large $2.6 billion volume means very little.

Market reaction

After the news, RLUSD remained one of the most notable stablecoins in the segment. As of October 28, 2026, CoinGecko showed a market capitalization of $2.6146 billion and a daily trading volume of $187.8 million. The day before, volume was $428.6 million.

That is a sharp drop in daily turnover. But RLUSD’s scale already shows that the coin has moved beyond a launch experiment. Recall that exchange listings began on December 17, 2024. At that time, as of December 31, 2024, only 77.2 million RLUSD were in circulation.

So in less than two years, market cap grew by roughly 34 times. For the stablecoin market, that is a fast pace. And for Ripple, it is also confirmation that the product is already working in practice, not just on paper.

• Moody’s gave RLUSD an A2 and P-1 rating.

• RLUSD has $2.5280 billion in reserves versus $2.3828 billion in circulation.

• Coverage is about 106.1%.

• As of October 28, 2026, RLUSD’s market cap reached $2.6146 billion.

• Daily trading volume at that time was $187.8 million.

• RLUSD launched on December 17, 2024.

Against this backdrop, it is also worth recalling the recent news about crypto taxes in Latvia. The market is increasingly moving toward official rules rather than a gray zone. That is why ratings for stablecoins are becoming more important than flashy announcements.

What does this mean for investors?

For RLUSD traders, this is first and foremost a sign of greater trust from major players. The A2 rating does not make the token risk-free. But it strengthens its position in talks with banks, payment services, and corporate clients.

For long-term XRP holders, this is also not a minor detail. Ripple is building not just one product, but an entire infrastructure line around payments, custody, and tokenized settlements. RLUSD here looks like a separate bridge between traditional finance and blockchain.

There is another practical point. When a stablecoin has a clear reserve base, investors are less afraid of sharp deviations from $1. That is why reserve transparency and the agency rating work together. One without the other has a weaker effect.

Frequently asked questions

What does the A2 rating mean for RLUSD?

It is an investment-grade level in Moody’s scale. For the market, it is a sign that the issuer and asset structure look more reliable than most new stablecoins. But it is not a guarantee against all risks.

Why didn’t Moody’s rate it higher?

The agency sees limitations in the redemption structure and the legal protection of reserves. In particular, direct redemption is not available to everyone, and Standard Custody is not bankruptcy-remote. That restrains any further rating upgrade.

How large has RLUSD become?

According to CoinGecko on October 28, 2026, RLUSD’s market cap was $2.6146 billion, and daily trading volume was $187.8 million. For a token that launched on December 17, 2024, that is already a serious scale.

So, RLUSD received not just a nice label from Moody’s, but official recognition at the institutional level. For Ripple, this is a step toward broader access to banking infrastructure. For the market, it is another sign that stablecoins are entering a stricter, but also more mature, rule set. Those looking to take advantage of the situation can quickly sell USDT TRC20 to Monobank — without unnecessary complications and at a favorable rate.

This material is not financial advice. Cryptocurrency trading involves significant risks. Part of this text was prepared with the help of artificial intelligence based on public sources and reviewed by our editorial team.