HomeCoinsBitcoinRipple scores two major wins for its RLUSD stablecoin

Ripple scores two major wins for its RLUSD stablecoin

Ripple’s RLUSD stablecoin has launched on Coinbase and its Base blockchain after Moody’s assigned the token an investment-grade credit rating.

The agreement announced Wednesday makes RLUSD available on Coinbase’s retail and institutional trading platforms, expanding the dollar-backed cryptocurrency’s distribution through the largest US crypto exchange.

The development comes as Ripple expands the stablecoin’s presence in financial markets following its December 2024 launch, with RLUSD surpassing $2.4 billion in market capitalization.

Coinbase expands RLUSD access to its fast-growing Base network

Under the agreement, customers can now trade and manage RLUSD through Coinbase’s retail application, Coinbase Exchange, and Coinbase Prime, its institutional trading and custody platform.

The integration also allows customers to convert US dollars and other supported dollar-backed stablecoins into RLUSD at a 1:1 rate.

Coinbase will support deposits and withdrawals across three blockchain networks: the XRP Ledger, Ethereum, and Base, its Ethereum Layer 2 network.

Ripple will also provide liquidity on Base to support RLUSD trading and adoption across the network’s growing ecosystem of decentralized financial applications.

The expansion gives Ripple access to a blockchain that has become a major hub for stablecoin transactions and digital payments.

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According to Coinbase’s second-quarter earnings report, stablecoin transaction volume on Base increased sevenfold year over year, reflecting growing use of the network for dollar-denominated transfers.

The exchange also reported that more than 90% of stablecoin transaction volume associated with onchain AI agents occurred on Base during the quarter.

The network’s growth has largely been supported by Circle’s USDC, which remains central to Coinbase’s stablecoin business. Adding RLUSD introduces another dollar-backed asset into that ecosystem, extending its availability beyond its existing XRP Ledger and Ethereum markets.

The companies also plan to make RLUSD available to Coinbase Global Exchange customers, including allowing institutional traders to use the stablecoin as collateral for trading activities.

Jack McDonald, Ripple’s senior vice president of stablecoins, said the agreement would help address growing institutional demand for regulated digital dollars by making RLUSD available through established trading and custody infrastructure.

The expansion also follows Ripple’s agreement with Robinhood earlier this week to bring RLUSD to its trading ecosystem and support institutional settlement on the XRP Ledger.

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Moody’s assigns RLUSD investment-grade credit ratings

The Coinbase expansion follows another milestone for RLUSD after Moody’s Ratings assigned the stablecoin an A2 long-term deposit rating and a P-1 short-term deposit rating.

The A2 rating places RLUSD within Moody’s investment-grade category, while P-1 represents the agency’s highest short-term rating.

McDonald described RLUSD as the first stablecoin to receive an investment-grade rating from Moody’s, calling the assessment a significant endorsement of its financial infrastructure and reserve management.

Moody’s based its assessment on the quality and liquidity of RLUSD’s reserves, redemption arrangements, custody protections, regulatory oversight, and operational controls.

The agency said the stablecoin’s reserves consist predominantly of short-term US government securities and cash, with issuer Standard Custody & Trust Company targeting 103% reserve coverage.

BNY holds most of those assets, including US Treasury bills and other short-term government securities. The issuer also runs weekly liquidity stress tests and monitors reserves daily.

Moody’s also examined the legal protections surrounding RLUSD’s reserves, which are segregated from the issuer’s corporate assets and dedicated to meeting redemption obligations.

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Although holders do not currently have direct ownership claims over those reserves, the agency said the GENIUS Act, scheduled to take effect in 2027, could strengthen their legal protections.

The reserve arrangements support RLUSD redemptions at face value within two full business days for eligible institutional holders, alongside independent monthly attestations and oversight by the New York Department of Financial Services.

The rating applies to RLUSD issued natively on the XRP Ledger and Ethereum, adding an independent credit assessment to the stablecoin as Ripple expands its distribution through major trading platforms.

McDonald linked that growing reach to the importance of independent credit assessments in establishing stablecoins within the broader financial system. He concluded:

“As RLUSD continues to grow, this kind of independent validation matters more than ever. Moody’s has helped set the standard for assessing credit quality and risk across traditional finance for decades, and bringing that same level of assessment to stablecoins themselves is a major step forward for the industry.”

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