Moody’s has assigned investment-grade RLUSD ratings of A2 for the long term and P-1 for the short term, while warning that the stablecoin’s legal structure limits the assessment. The ratings cover tokens issued by Ripple subsidiary Standard Custody & Trust Company on the XRP Ledger and Ethereum.

Key Takeaways

  • A2 is an upper-medium-grade long-term rating, while P-1 is Moody’s highest short-term grade.
  • Moody’s said RLUSD holders do not have a direct ownership interest in the reserves.
  • BNY has expanded its custody platform to support RLUSD and XRP.

What the RLUSD ratings cover

Moody’s assessed the quality and market value of reserve assets, reserve coverage, liquidity and redemption arrangements. It also considered custody, reserve segregation and operational, legal and regulatory risks.

RLUSD’s reserves consist mainly of cash and highly liquid, short-duration US government assets. Standard Custody targets reserve coverage of 103%; that target is not a reported measure of current coverage.

Legal structure limits the rating

Moody’s said Standard Custody is not bankruptcy-remote and that RLUSD holders do not directly own the reserves. The agency said stronger separation would support a higher rating.

The ratings do not guarantee that RLUSD will maintain its dollar peg in every market condition. Moody’s said weaker reserve quality or coverage, or reduced liquidity and redemption capacity, could trigger a downgrade.

RLUSD had a market capitalization of roughly $2.6 billion as of October 28, 2026, based on DeFiLlama data.

BNY expands custody services

On October 27, BNY’s expanded custody collaboration with Ripple added support for RLUSD and XRP on the bank’s Digital Asset Custody platform. BNY is also the primary custodian for RLUSD reserves.

The companies intend to work toward allowing BNY clients to mint and redeem RLUSD directly through the bank and to advance tokenized trade finance. The future product plans remain subject to final BNY and regulatory approvals.

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