As the adoption of the Ripple stablecoin RLUSD continues to grow, it appears that Ripple has continued to reshuffle the tokens to continue pumping the available supply on Ethereum.
Onchain data shared earlier today has stirred reactions after revealing an unusual cross-chain movement carrying RLUSD between the XRP Ledger and the Ethereum blockchain.
1,363,614.85 RLUSD shifts between two chains
Notably, the data shows that a total of 1,363,614.85 RLUSD was burned or sent to an irretrievable wallet on the XRP Ledger on September 6.
The transaction, which appears to have been carried out by the RLUSD issuer, Ripple, has the tokens permanently removed from circulation on XRPL.
Nonetheless, further data showed a similar transaction containing the same 1,363,614.85 RLUSD being minted on Ethereum just a few seconds later.
Following this event, the tokens minted on Ethereum were eventually transferred to an external wallet, suggesting that the movement was likely traceable to Ripple conducting an issuer-side migration or rebalancing of RLUSD supply between the two networks.
What's Ripple up to?
While the initial transaction showed that the tokens were being returned to the issuer via the XRPL transaction and permanently burned, the subsequent move saw Ethereum record a massive creation of the same amount of RLUSD.
Rather than the usual move to increase or decrease the available supply of RLUSD on either blockchain, the move comes with a twist this time as it signals a shift in where existing RLUSD liquidity is held.
With Ripple moving about $1.36 million worth of RLUSD from the XRP Ledger to Ethereum, many believe it could be intended to expand RLUSD liquidity across supported chains.
Dan Burgin
U.Today Editorial Team
