Ripple has burned 15 million Ripple USD (RLUSD) tokens, according to a Sept. 10 announcement.
Blockchain data shows that 15 million RLUSD, worth roughly $15 million, was transferred from the RLUSD Treasury to the Ethereum null address. The transaction was successfully confirmed on Ethereum earlier on Thursday.
Other recent moves
There has been a flurry of large minting and redemption transactions involving Ripple’s stablecoin treasury.
On Sept. 8, the Ripple Stablecoin Tracker spotted another 10 million RLUSD burn. This was followed shortly afterward by the minting of approximately 14.39 million RLUSD.
A day earlier, on Sept. 7, another 18 million RLUSD was minted on Ethereum. Ripple had also minted 20 million RLUSD on Sept. 4 and 16 million RLUSD on Sept. 3.
Large stablecoin burns are, of course, not a negative signal (as anyone who follows them regularly already knows). RLUSD is issued and redeemed in response to institutional demand. Tokens can be destroyed when customers redeem their holdings.
RLUSD keeps expanding
The latest burn is merely a drop in the bucket. According to CoinGecko, the stablecoin’s market capitalization stood at approximately $2.42 billion on Sept. 10. This compares with roughly $1.76 billion on Aug. 18.
At this rate, RLUSD could be on track to surpass PayPal USD (PYUSD) in the near future.
RLUSD has also picked up several institutional use cases. In August, for instance, Ripple backed an institutional credit fund being developed with Clearpool and Cicada Partners.
The initiative is intended to operate on the XRP Ledger and relies on proposed
Ripple attempts to position RLUSD not merely as infrastructure for payments, tokenization, lending, collateral management and so on.
U.Today Editorial Team
Dan Burgin
