RLUSD, a dollar-denominated stablecoin issued by Ripple subsidiary Standard Custody & Trust Company, received Moody’s A2 long-term and P-1 short-term deposit ratings on October 27. A2 denotes upper-medium-grade credit quality, while P-1 is Moody’s highest short-term rating. The assessment came one day after Ripple received final OCC approval to establish Ripple National Trust Bank, strengthening the token’s institutional framework as its market capitalization exceeded $2.5 billion. Standard Custody targets reserves equal to 103% of RLUSD outstanding, with most assets held at BNY and backed primarily by short-term U.S. Treasuries, other liquid government assets and cash. Eligible institutional holders can redeem directly at par, generally within two business days, while the arrangement does not automatically extend to every retail holder. The bank will oversee segregated reserves and act as collateral trustee, but RLUSD is not an FDIC-insured deposit. Moody’s identified the absence of bankruptcy-remote issuance and direct holder ownership of reserve assets as weaknesses. Standard Chartered has added custody services linked to proposed trading-collateral arrangements, and Coinbase has expanded RLUSD distribution across its platforms. A Ripple executive responsible for stablecoins said RLUSD was the first stablecoin to receive an investment-grade rating from Moody’s.