Ripple Adds 9,900,000 RLUSD to Ethereum Network

The official Ripple USD ($RLUSD) Treasury account recently received 9.9 million $RLUSD tokens. This happened on the Ethereum blockchain after weeks of consistent $RLUSD burning on the network.

Ripple mints 9.9 million $RLUSD

Community account Ripple Stablecoin Tracker on X spotlighted the new 9,900,000 $RLUSD minted in a recent post.

Notably, minting occurs when there is demand for more $RLUSD from exchanges, institutions or even retail users. Upon request, the Ripple Treasury smart contract, which is the issuer, creates new $RLUSD tokens from scratch.

The new tokens are added to the total supply and can now be transferred, traded or used on Ethereum. Also, these tokens are fully backed 1:1 by USD cash and cash equivalents that Ripple holds in regulated custody accounts.

Crucially, the latest 9.9 million $RLUSD minting follows a series of token burns in the past few weeks. Burning is the opposite of minting, where Ripple permanently removes $RLUSD tokens from circulation.

In late March and early April, the crypto market observes a clear wave of large burns. Over $230 million $RLUSD were burned in roughly one week.

One of the biggest was Ripple burning 180 million $RLUSD in just a few hours. Multiple millions of other burns occurred across both XRPL and Ethereum.

Essentially, Ripple frequently mints and burns large batches to efficiently manage supply, rebalancing between the $XRP Ledger and Ethereum chains.

More $RLUSD expansion

While Ripple regulates $RLUSD supply and demand, the stablecoin is strengthening its position as a bridge between traditional assets and the crypto market.

As disclosed in a recent report, Bitrue exchange has launched a unique trading pair of $RLUSD against PAXG and XAUT. These tokens represent tokenized gold issued by Paxos and Tether — the issuer of USDT — respectively.

Prior to the integration, Deloitte published a new report stating that the Ripple stablecoin reserves were worth $1.56 billion. This figure exceeds the market supply of $1.49 billion tokens.

In another bold expansion move, Binance exchange announced support for the Ripple USD stablecoin on XRPL. Through this integration, Binace users are allowed to transact $RLUSD directly via the $XRP Ledger.

These developments signal increased exposure of $RLUSD to more users in the crypto space. This indicates the rapid expansion of the stablecoin, launched on Dec. 17, 2024. Ripple designed $RLUSD to facilitate cross-border payments and provide liquidity within Ripple’s ecosystem.