Moody’s Investors Service assigned Ripple’s RLUSD stablecoin an A2 long-term credit rating and a P-1 short-term rating. This is the first conventionally defined investment-grade assessment granted by a major international rating agency to a native payment token. The rating is based on constant overcollateralization of 103%, reserves consisting entirely of U.S. dollars and short-term U.S. Treasury securities, and custody by Bank of New York Mellon. Ripple also received final approval from the U.S. Office of the Comptroller of the Currency to launch Ripple National Trust Bank, which will take over the trustee role for the reserves. Moody’s nevertheless notes that the issuer is not legally insulated from Ripple’s bankruptcy risk, that RLUSD holders have no direct claim on assets held at BNY Mellon, and that a judicial freeze on operations would automatically suspend redemptions.
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