Is Ripple’s A2-Rated RLUSD the Key to XRP’s Success on Coinbase?
Brief Overview
Despite RLUSD receiving an A2 rating from Moody’s and being listed on Coinbase, XRP experienced an 11.3% decline, as these developments do not inherently boost demand for the token.
With a supply of $2.6 billion, RLUSD falls significantly behind USDC, which has a supply of $71 billion, and Tether, with $182 billion. Coinbase profits more from USDC due to a commercial agreement with Circle.
No exchanges, banks, or payment providers have pledged to utilize XRP as a bridge for RLUSD transactions, crucial information that XRP owners should note.
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This week, holders of XRP (CRYPTO:XRP) received positive updates about Ripple’s stablecoin, yet these developments surprisingly failed to affect the token’s price. Moody’s has awarded Ripple USD (CRYPTO:RLUSD) an A2 rating, representing a robust investment-grade score. Furthermore, Coinbase (NASDAQ:COIN) has made this stablecoin accessible to both retail and institutional users. But how does this enhance the situation for XRP holders?
XRP’s value recently stood at $1.32, slightly below its 20-day average of $1.33, reflecting an 11.3% decline in the past month. Even with the favorable credit rating and Coinbase’s addition of Ripple’s stablecoin, XRP remains stagnant for its dedicated supporters.
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Implications of Moody’s A2 Rating and Coinbase Inclusion for RLUSD
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An A2 grade reflects a reliable investment with low credit risk for RLUSD. This rating signifies a substantial step above speculative ratings, as it attracts pension funds, insurance firms, and corporate treasuries that favor investment-grade assets. Moody’s highest short-term rating, P-1, shows that Ripple can readily fulfill short-term obligations, like redemptions.
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Ripple is enhancing regulatory oversight of RLUSD. This stablecoin is issued by Standard Custody & Trust Company, under the supervision of New York’s Department of Financial Services. Additionally, a new national trust charter, sanctioned by the OCC on October 26, 2026, introduces federal oversight, enabling Ripple to manage reserves, act as a collateral trustee, and provide custody services for digital assets, although it does not allow Ripple to accept deposits or extend loans.
BNY Mellon acts as the main reserve custodian for RLUSD. Moody’s emphasized strong reserve coverage, liquidity, and redemption options, with the reserves primarily in U.S. Treasuries and cash. Ripple consistently releases third-party audits confirming the stablecoin’s supply and reserves.
Currently, RLUSD is trading at $0.999885, indicating it sustains its value well and meets the stability that Moody’s analysts desire in a dollar-pegged coin.
RLUSD Remains Smaller Than USDC and Tether
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At present, RLUSD boasts a supply of $2.6 billion, a fraction compared to USD Coin (CRYPTO:USDC) at $71.1 billion and Tether at $181.58 billion. Although Moody’s rating provides RLUSD an edge in attracting treasurers concerned with credit quality, it still lags behind these larger competitors.
Stablecoin issuers typically earn revenue through interest on their reserves. This considerable difference in size results in reduced income for RLUSD, meaning any earnings are returned to Ripple rather than RLUSD investors.
Coinbase has vested interests concerning stablecoins. The platform benefits from USDC, owing to a commercial agreement with Circle that was filed with the SEC. Consequently, Coinbase experiences higher profits when users choose to hold USDC. Moreover, Base, one of the blockchains supporting RLUSD on Coinbase, is proprietary. While RLUSD’s availability gives users an option, there is no compulsion for Coinbase to market it actively.
Ripple’s recent partnerships follow a similar pattern. RLUSD has been launched on Robinhood Chain and Bitstamp, in collaboration with Robinhood (NASDAQ:HOOD), with BNY facilitating the direct minting and redemption of RLUSD for its clientele. Each collaboration broadens the reach of the stablecoin but remains focused primarily on RLUSD, not XRP.
Why XRP Is Absent From Both Announcements
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XRP has no direct connection to either the Moody’s rating or Coinbase listing. Moody’s evaluated RLUSD’s deposits, while Coinbase’s listing pertains solely to dollar transactions, excluding XRP as a settlement option. No exchanges, banks, or payment firms have indicated a willingness to utilize XRP for transactions related to this news, and platforms like Ethereum and Base do not incorporate XRP either.
For RLUSD users on Ripple’s network, only a minimal amount of XRP is necessary, primarily as a reserve to set up an account and cover small transaction fees. In contrast, users of RLUSD on Ethereum or Base do not need any XRP at all.
Will an Enhanced RLUSD Affect XRP’s Value?
Not immediately. While the A2 rating, Coinbase integration, and regulatory endorsement enhance Ripple’s stablecoin operations and the ledger’s reputation among financial institutions, these developments do not create an inherent demand for XRP. Ripple stands to benefit, as a federally regulated stablecoin is more appealing to treasurers, custodians, and investment firms. XRP’s benefits might be subtler, offering additional accounts, more activity on the ledger, and an enhanced reputation for the platform.
XRP has fallen 11.3% in the last month, while RLUSD maintains its peg and boasts a Moody’s rating, indicating that the stablecoin’s progress has not benefited XRP directly. A clear indication for XRP investors would be a partnership identifying XRP as the bridge asset for RLUSD transactions or Ripple showing that RLUSD supply is expanding more rapidly on the XRP Ledger than on other platforms. Absent that, the growth of RLUSD might continue independently of XRP.
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