RLUSD arrives on Coinbase and gets an A2/P-1 rating from Moody's – what a stablecoin rating measures, and what it does not
Three networks, 1:1 conversion, an investment-grade rating and an unconfirmed \"first\" claim. What A2 and P-1 mean and why a rating is not a guarantee – with sources, without prices.
On Wednesday 28 October 2026, Ripple's dollar stablecoin RLUSD became available on the Coinbase crypto exchange. According to crypto.news, the service runs on the XRP Ledger (XRPL), Ethereum and Coinbase's own Base network. The same week, credit rating agency Moody's gave RLUSD an A2 long-term and P-1 short-term rating. This article separates what the two pieces of news mean and what they do not. It says nothing about price.
| Fact sheet | |
|---|---|
| Coinbase launch | 28 October 2026 |
| Platforms | Coinbase Prime (for professional clients), Coinbase Exchange, retail app |
| Networks | XRP Ledger, Ethereum, Base |
| Service | trading, custody, 1:1 conversion from dollars or other eligible dollar stablecoins |
| Moody's | A2 (long-term), P-1 (short-term), deposit rating |
| Issuer | Standard Custody & Trust Company (under New York oversight) |
| Reserve custodian | BNY |
Sources: crypto.news, 28 Oct (Coinbase), crypto.news, 28 Oct (Moody's).
What launched on Coinbase
According to crypto.news, RLUSD can be traded, held in custody and converted 1:1 from dollars or other eligible dollar-denominated stablecoins. Ripple committed to providing liquidity on Base but did not disclose an amount. As a later step, Coinbase plans to offer it to Global Exchange customers, including as collateral — with no date given. A full list of trading pairs, fees and any rewards programme was not announced.
The news adds to the first-day announcements at the Swell conference: on 27 October Ripple announced an agreement with Robinhood and expanded its custody relationship with BNY.
What A2 and P-1 mean
According to crypto.news, Moody's rating is a deposit rating and covers RLUSD issued on the XRPL and Ethereum.
| Rating | What it means on Moody's scale |
|---|---|
| A2 | investment grade on the long-term scale, but not the top (Aaa) |
| P-1 | the highest short-term category |
According to the source, Moody's methodology examines reserve asset quality, legal segregation and liquidity. According to Ripple executive Jack McDonald, it also covers redemption arrangements, custody relationships, regulatory oversight and operating controls.
What the rating does NOT mean
The source lists separately that it:
- does not guarantee redemption or rule out the price moving away from $1;
- does not mean banks have approved RLUSD for use;
- does not make RLUSD an insured bank deposit;
- comes with a public notice that lacks Moody's full rationale and gives no review date.
Reserves and market size
According to crypto.news, reserves are mainly cash and short-dated US government securities, with reported coverage of about 103% measured at a point in time. Sources give different figures for the value of RLUSD outstanding: Ripple says above $2.4 billion, BNY's statement of 27 October about $2.5 billion, and an earlier round-up citing DeFiLlama $2.57 billion. This is the value of tokens outstanding, not how much is held on Coinbase.
The "first" claim
According to McDonald, RLUSD is the first stablecoin to receive an investment-grade Moody's rating. The source notes that Moody's public notice does not independently confirm this. Other agencies use other scales: S&P, for example, gives stability scores (USDC received a 2, USDT a 5), which the source says cannot be directly compared with a deposit rating.
MiCA: what applies in the EU
The Coinbase article does not list the countries where the service is available and does not mention the EU. In the European Union, under the MiCA regulation, providers may only offer compliant stablecoins; on checking a stablecoin's status, see MiCA stablecoins: how to check. A US rating or an exchange listing does not by itself mean EU availability.
5 things many people don't know
- A rating is not a price guarantee. The Moody's rating does not rule out a move away from $1.
- A2 is not the top grade. On Moody's long-term scale, Aaa is the best.
- The rating does not cover every network. It applies to RLUSD issued on the XRPL and Ethereum.
- Market value is not Coinbase volume. The above-$2.4 billion figure refers to tokens outstanding.
- A stablecoin is not a bank deposit. According to the source, it is not an insured deposit even after the rating.
Summary
- Coinbase: RLUSD from 28 October, on XRPL, Ethereum and Base.
- Moody's: A2 / P-1 deposit rating.
- Does not mean: a redemption guarantee, bank approval or deposit insurance.
- Unconfirmed: the "first investment-grade stablecoin" claim.
- EU: not mentioned by the sources; MiCA rules apply separately.
Related reading: RLUSD launch, 17 December 2024 · MiCA stablecoins: how to check · Blog archive.
Educational content. Not investment advice. This article describes public announcements and press sources and says nothing about price. Data Analytic Investments is not affiliated with Ripple Labs, Coinbase, Moody's, BNY or the portals cited; names are used for identification only. Images labelled "AI illustration" are not photographs.
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