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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.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
