TLDR
- Ripple recently minted 9.9 million RLUSD tokens on the Ethereum blockchain.
- The minting follows a series of large RLUSD token burns conducted by Ripple.
- The newly minted RLUSD tokens are backed 1:1 by USD cash and equivalents.
- Ripple’s strategy of minting and burning tokens helps balance RLUSD supply and demand.
- The recent minting expands RLUSD’s availability for trading and use on the Ethereum network.
Ripple has recently minted 9.9 million RLUSD tokens on the Ethereum blockchain. This follows weeks of RLUSD burns and comes as part of Ripple’s ongoing supply management. The minting process is initiated when there is demand for more RLUSD from exchanges, institutions, or retail users.
New RLUSD Minting Follows Burn Process
The official Ripple USD (RLUSD) Treasury account added 9.9 million RLUSD tokens to the Ethereum blockchain. This action comes after a series of significant burns in March and April, where Ripple removed over $230 million in RLUSD tokens from circulation. These token burns were part of Ripple’s strategy to balance the supply of RLUSD between the XRP Ledger and Ethereum.
“Minting occurs when there is demand for RLUSD, and the issuer, the Ripple Treasury smart contract, creates new tokens,” Ripple explained. These new tokens are backed 1:1 by USD cash and equivalents, held in regulated custody accounts. As such, the minted tokens are fully supported by traditional assets, ensuring their value.
With this minting, the total RLUSD supply increases, and the tokens are now available for use and trading. Ripple’s approach of minting and burning tokens is designed to keep the supply of RLUSD in line with market demand. The goal is to maintain the stablecoin’s value and ensure liquidity within Ripple’s ecosystem.
Ripple Strengthens RLUSD Presence in the Crypto Market
Ripple’s RLUSD continues to strengthen its position in the crypto market with increased demand. The recent minting adds to the ongoing expansion of RLUSD, a stablecoin designed to facilitate cross-border payments. According to a recent report, Bitrue exchange now supports trading RLUSD against tokenized gold options like PAXG and XAUT.
The stablecoin’s reserves are valued at $1.56 billion, surpassing the market supply of $1.49 billion tokens. This highlights Ripple’s ongoing growth in the stablecoin sector. Binance has also integrated RLUSD on the XRP Ledger, allowing users to transact RLUSD directly on the network.
Ripple launched RLUSD on December 17, 2024, with the aim of providing liquidity and improving cross-border payments. With multiple exchange integrations and strong backing, RLUSD is becoming more embedded in the broader crypto ecosystem.