Moody’s gives it an A2 rating, SEC clears custody—but XRP rises just 1.96%
On October 27, Moody’s assigned RLUSD long-term A2 and short-term P-1 ratings, making it the first investment-grade stablecoin in history.
Its reserves are mostly cash and short-term U.S. Treasuries, held at BNY Mellon, with a target coverage ratio of 103%.
New on October 29: The SEC’s September 30 no-action letter confirms that state-chartered trust companies can serve as qualified crypto custodians. Ripple and Coinbase are both among the beneficiaries.
Custody agreements cannot allow assets to be used without clients’ consent, and client assets must be segregated from company assets.
RLUSD’s market cap has doubled this year, from $1.28 billion to $2.57 billion, but it still accounts for less than 1% of the $303 billion stablecoin market.
Here’s the contrast: XRP closed at $1.32 on October 28, up just 1.96% on the day. It was still at $1.49 in early October.
I see this as a win for compliance infrastructure, not token prices: the rating assesses reserve safety, not demand for XRP.
Invalidation levels: If XRP closes above $1.40 on a daily candle with increased volume, or RLUSD’s market cap tops $5 billion within a quarter, this view is invalidated.
Would you see this as a long-term positive, or a case of “buy the rumor, sell the news”?
$XRP $RLUSD
#Ripple #Stablecoin
This is not investment advice. DYOR. Trading involves risk.
On October 27, Moody’s assigned RLUSD long-term A2 and short-term P-1 ratings, making it the first investment-grade stablecoin in history.
Its reserves are mostly cash and short-term U.S. Treasuries, held at BNY Mellon, with a target coverage ratio of 103%.
New on October 29: The SEC’s September 30 no-action letter confirms that state-chartered trust companies can serve as qualified crypto custodians. Ripple and Coinbase are both among the beneficiaries.
Custody agreements cannot allow assets to be used without clients’ consent, and client assets must be segregated from company assets.
RLUSD’s market cap has doubled this year, from $1.28 billion to $2.57 billion, but it still accounts for less than 1% of the $303 billion stablecoin market.
Here’s the contrast: XRP closed at $1.32 on October 28, up just 1.96% on the day. It was still at $1.49 in early October.
I see this as a win for compliance infrastructure, not token prices: the rating assesses reserve safety, not demand for XRP.
Invalidation levels: If XRP closes above $1.40 on a daily candle with increased volume, or RLUSD’s market cap tops $5 billion within a quarter, this view is invalidated.
Would you see this as a long-term positive, or a case of “buy the rumor, sell the news”?
$XRP $RLUSD
#Ripple #Stablecoin
This is not investment advice. DYOR. Trading involves risk.
