Ripple's dollar-backed stablecoin, RLUSD, has received significant ratings from Moody's Investors Service, marking a notable milestone for the cryptocurrency firm. The publication provides the following information: this development comes on the heels of Ripple's recent approval for Ripple National Trust Bank, which will oversee the stablecoin's reserves.
Moody's Ratings for RLUSD
Moody's has assigned an A2 long-term deposit rating and a P1 short-term deposit rating to RLUSD, issued by Standard Custody & Trust Company. These ratings are indicative of the quality of RLUSD's reserves, which are primarily composed of Treasury bills and cash. However, Moody's also highlighted certain gaps in holder protection that investors should be aware of.
Liquidity and Redemption for Investors
Eligible institutional holders of RLUSD can redeem their tokens at par within two business days, providing a level of liquidity that is attractive to investors. The ratings were specifically requested by the issuer, reflecting Ripple's proactive approach in establishing credibility and trust in the stablecoin market.
At the recent Ripple Swell conference, Treasury Secretary Scott Bessent emphasized the increasing importance of stablecoins, particularly their connection to the US dollar. This discussion aligns with Ripple's recent developments, including the launch of RLUSD. For more details, see stablecoins.
