Moody’s assigned Ripple USD (RLUSD), the dollar-backed stablecoin issued by Standard Custody & Trust Company, an A2 long-term deposit rating and a P-1 short-term deposit rating. The agency relied on reserves held mainly in U.S. Treasury bills, other short-term government assets and cash, with a target of 103% coverage of tokens in circulation and redemption at par within two business days for eligible institutional holders. Moody’s nevertheless flagged the absence of bankruptcy remoteness for Standard Custody and the lack of a direct ownership interest in reserves for RLUSD holders, despite the future exclusion of required reserves from an issuer’s bankruptcy estate under the GENIUS Act. The rating came after final OCC approval for Ripple National Trust Bank, which will manage RLUSD’s reserves, while the stablecoin remains issued under New York Department of Financial Services oversight. Launched on Ethereum and the XRP Ledger in December 2024, RLUSD has a market capitalization of about $2.6 billion and is being promoted through institutional partnerships with Standard Chartered, Mastercard, WebBank and Gemini.
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