UPDATE: Moody’s details reserve backing for Ripple's RLUSD rating
CIE News ·
Update to Moody's assigns A2 rating to Ripple's RLUSD stablecoin
Based on reporting by crypto.news; not yet independently confirmed.
Moody’s A2 and P-1 ratings for Ripple’s RLUSD cover tokens on Ethereum and the XRP Ledger, supported by a 103% overcollateralized reserve portfolio at BNY Mellon.
Additional details have emerged regarding Moody’s A2 long-term and P-1 short-term deposit ratings for Ripple’s RLUSD stablecoin, as previously reported. The assessment marks the first investment-grade rating assigned to a native payment token by a major rating agency. The evaluation specifically covers RLUSD obligations issued on Ethereum and the XRP Ledger by Standard Custody & Trust Company, Ripple's New York-regulated entity.
According to reports cited by crypto.news and u.today, the rating is backed by a reserve portfolio of cash and U.S. Treasuries maintaining a 103% overcollateralization ratio. The reserves feature segregated custody at BNY Mellon, a par redemption commitment, and a $50 million limit on uninsured deposits. In Moody's framework, P-1 represents the highest short-term rating, while A2 reflects an upper-medium investment grade.
Legal limitations temper the long-term assessment. As reported by u.today, the token issuer is not legally isolated from the bankruptcy risks of the parent Ripple group, and RLUSD holders have no direct legal claim on the collateral assets held at BNY Mellon.
Key facts
- A2 and P-1 credit ratings
- 103% overcollateralization
- Ethereum and XRP Ledger
- BNY Mellon custody
Read the original at crypto.news