Ripple's RLUSD Earns First-Ever Moody's Investment-Grade Stablecoin Rating as Market Cap Doubles

Ripple’s USD (CRYPTO: RLUSD) stablecoin has reportedly become the first stablecoin to receive an investment-grade rating from Moody’s Ratings marking a major milestone for institutional adoption.

Why Is Moody’s Rating Significant For RLUSD?

Moody’s assigned RLUSD an A2 long-term rating and a P-1 short-term rating, the highest possible short-term rating under its new stablecoin framework.

The assessment examined Ripple’s reserve quality, liquidity, redemption mechanisms, custody arrangements, regulatory oversight and operational controls.

It represents a significant validation of RLUSD’s institutional-grade infrastructure and could strengthen confidence among banks, payment providers and other financial institutions.

"The forthcoming GENIUS Act, once in effect in 2027 will provide additional statutory protections relating to Reserve assets and stablecoin holder claims, including the exclusion of required reserves from the issuer’s bankruptcy estate," Moody’s highlighted.

The rating follows Ripple’s recent Robinhood collaboration to expand RLUSD’s institutional settlement use and potentially boost demand beyond crypto trading.

RLUSD Market Cap Doubles As Ripple Expands

Rand Group partner Richard Seiler noted on Wednesday that RLUSD’s market capitalization has doubled this year, climbing from $1.28 billion to $2.57 billion.

On the other hand, competing stablecoins USD1 and PayPalUSD (CRYPTO: PYUSD) have retreated from their respective peaks.

Despite the growth, RLUSD still accounts for less than 1% of the $303 billion stablecoin market, leaving substantial room for expansion.

Seiler also highlighted Ripple’s reported final approval from the Office of the Comptroller of the Currency (OCC) for its national trust bank, strengthening its regulated financial infrastructure.

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