Moody’s Ratings assigned A2 long-term and P-1 short-term deposit ratings to Ripple USD (RLUSD), the stablecoin issued by Ripple subsidiary Standard Custody & Trust Company. Moody’s said the issuer requested the ratings and that RLUSD’s reserves are held mainly in short-term U.S. government assets and cash. Only eligible institutional holders can redeem RLUSD at par within two business days.
Moody’s also noted that Standard Custody is not bankruptcy-remote and that RLUSD holders do not currently have a direct ownership interest in the reserves. The rating followed final U.S. regulatory approval for Ripple National Trust Bank, which will manage RLUSD’s reserves; Standard Custody will continue to issue the token under New York state oversight.
