Moodys Opens The XRP Floodgates

A major credit rating from Moody’s has given RLUSD a new level of recognition from traditional finance, and Digital Asset Investor believes the development could have broader implications for XRP.

In a video attached to his X post, he described the announcement as potentially the biggest among several recent developments involving RLUSD, BNY, and Coinbase.

His comments came after Ripple SVP of Stablecoins Jack McDonald announced that Moody’s Ratings had assigned RLUSD an A2 long-term rating and a P-1 short-term rating. The P-1 rating represents Moody’s highest short-term rating category under its stablecoin framework.

Moodys Opens The XRP Floodgates pic.twitter.com/HXgZzvQYoA

— Digital Asset Investor (@digitalassetbuy) October 28, 2026

Moody’s Gives RLUSD Institutional Recognition

Digital Asset Investor focused heavily on the distinction between RLUSD and competing stablecoins. He noted that USDT and USDC do not currently hold the same Moody’s ratings under this framework, while RLUSD has received both an A2 long-term rating and P-1 short-term rating.

The ratings apply to RLUSD issued through Standard Custody & Trust Company, Ripple’s New York-regulated subsidiary. Moody’s assessment also takes into account RLUSD’s reserve structure, which maintains more than 103% reserve coverage, primarily through short-term U.S. Treasury bills and cash.

For institutions, a formal credit assessment can provide an additional reference point when evaluating settlement assets, liquidity instruments, and counterparty risks. That distinction becomes important as stablecoins increasingly move beyond crypto-native markets and into institutional financial operations.

BNY and Coinbase Add to the Institutional Push

Digital Asset Investor also connected the Moody’s announcement with developments involving BNY and Coinbase.

BNY serves as the primary custodian for RLUSD’s reserve assets, giving the stablecoin infrastructure a connection to one of the largest financial institutions in the United States. Coinbase has also expanded support for RLUSD across its retail and institutional platforms.

Together, these developments give RLUSD access to established financial infrastructure while Ripple continues to expand its presence across payments, custody, banking, and digital asset services.

Digital Asset Investor referred to these developments collectively before making his broader XRP claim.

“Folks, you don’t have to be a math genius to figure out where XRP is going,” he said. “XRP is at the center of all of it.”

Why XRP Matters to the RLUSD Expansion

RLUSD and XRP serve different functions, but their activity can intersect through the XRP Ledger. RLUSD transactions on XRPL require XRP for network fees, while increased stablecoin activity can contribute to greater usage of the ledger.

Higher RLUSD adoption could also support deeper liquidity across XRPL markets, potentially creating additional opportunities for XRP to function within cross-border liquidity flows.

However, RLUSD growth does not automatically translate into proportional demand for XRP. A stablecoin can increase its supply and transaction volume without creating a one-to-one increase in XRP purchases.

Still, Digital Asset Investor sees the combination of Moody’s rating, BNY custody, Coinbase support, and Ripple’s expanding financial infrastructure as evidence of a broader institutional push. For him, XRP’s role within that ecosystem makes the latest RLUSD development particularly significant.