Quick Read
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RLUSD earned a Moody's A2 rating and landed on Coinbase, but XRP still dropped 11.3% as neither development creates direct demand for the token.
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RLUSD's $2.6 billion supply trails USDC's $71 billion and Tether's $182 billion, and Coinbase earns more from USDC via a Circle commercial agreement.
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No exchange, bank, or payment firm has committed to using XRP as a bridge asset for RLUSD transactions, the clearest signal XRP holders need.
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This week, XRP(CRYPTO:XRP) holders received encouraging news regarding Ripple's stablecoin, but surprisingly, it hasn't impacted the token's price. Moody's assigned Ripple USD(CRYPTO:RLUSD) an A2 rating, indicating a solid investment-grade credit score. Additionally, Coinbase(NASDAQ:COIN) has made the stablecoin available for both retail and institutional customers. So, does this stronger stablecoin affect XRP holders?
XRP was trading at $1.32, just slightly below its 20-day average of $1.33, reflecting an 11.3% drop over the past month. Despite the positive credit rating and Coinbase listing for Ripple's stablecoin, this news hasn't moved XRP, the most-held coin among Ripple supporters.
What Moody's A2 Rating and Coinbase Listing Mean for RLUSD
An A2 rating signifies a solid investment grade and reflects low credit risk for RLUSD. This rating places it several steps above speculative or "junk" ratings, which matters because many pension funds, insurance companies, and corporate treasuries invest only in investment-grade assets. Moody's top short-term grade, P-1, indicates that Ripple can comfortably meet short-term commitments, such as redemptions.
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Ripple has been enhancing regulatory oversight over RLUSD. Standard Custody & Trust Company issues this stablecoin, and New York's Department of Financial Services regulates it. A new national trust charter, approved by the OCC on October 26, 2026, adds federal oversight, allowing Ripple to manage reserves, act as a collateral trustee, and offer custody services for digital assets, but it does not permit Ripple to accept deposits or make loans.
BNY Mellon serves as the primary reserve custodian for RLUSD, and Moody's highlighted strong reserve coverage, liquidity, and redemption options, with reserves held primarily in U.S. Treasuries and cash. Ripple also regularly publishes third-party reports that verify the coin's supply and reserves.
The stablecoin maintains its value well, currently trading at $0.999885, a sign of the stability Moody's analysts want in a coin designed to equal one dollar.
RLUSD Is Still Smaller Than USDC and Tether
Currently, RLUSD has a live supply of $2.6 billion, which pales in comparison to USD Coin(CRYPTO:USDC), with a market value of $71.1 billion, and Tether, at $181.58 billion. While Moody's grade gives RLUSD a strong advantage in attracting treasurers focused on credit quality, it is still playing catch-up with these larger rivals.
Stablecoin issuers primarily generate revenue from interest on their reserves. This significant size gap directly translates into lower income for RLUSD, meaning the profits it does earn flow back to Ripple rather than RLUSD holders.
Coinbase has its own interests when it comes to stablecoins. The exchange benefits financially from USDC because of a commercial agreement with Circle filed with the SEC. This means Coinbase profits more when customers opt to hold USDC. Furthermore, Base, one of the three networks supporting RLUSD on Coinbase, is its own blockchain. While the RLUSD listing gives customers a choice, it doesn't compel Coinbase to actively promote it.
Ripple's other recent partnerships follow a similar trend. RLUSD has gone live on Robinhood Chain and Bitstamp through a collaboration with Robinhood( NASDAQ:HOOD ), and BNY aims to facilitate direct minting and redemption of RLUSD for its clients. Each partnership expands the stablecoin's reach but focuses primarily on RLUSD, not XRP.
Why XRP Is Missing From Both Announcements
XRP is not directly involved in either announcement. Moody's rated RLUSD's deposits, and Coinbase's listing applies specifically to dollar conversions; neither mentions XRP as a settlement asset. No exchanges, banks, or payment firms have committed to buying XRP or using it in transactions based on this news, and platforms like Ethereum and Base don't use XRP.
RLUSD holders on Ripple's network need only a small amount of XRP, primarily as a base reserve to open an account and for nominal transaction fees. Conversely, those using RLUSD on Ethereum or Base do not require any XRP at all.
Will a Stronger RLUSD Influence XRP's Price?
Not directly, at least for now. The A2 rating, Coinbase listing, and regulatory approval mainly enhance Ripple's stablecoin business and the ledger's credibility with financial institutions, but none of these developments create intrinsic demand for XRP. Ripple stands to gain here, since a rated, federally supervised stablecoin is more appealing to treasurers, custodians, and investment funds. XRP's advantages are milder, more like extra accounts, more ledger activity, and a better reputation for the network.
XRP has dropped 11.3% over the past month, while RLUSD has maintained its peg and gained a Moody's rating, suggesting the stablecoin's progress has yet to reach XRP. The clearest signal for XRP holders would be a partner naming XRP as the bridge asset for RLUSD transactions, or Ripple showing RLUSD supply growing faster on the XRP Ledger than elsewhere. Without that, RLUSD may keep growing independently of XRP.
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