Key Takeaways:
Ripple executed a significant rebalancing of its dollar-pegged stablecoin on May 22, minting $200 million of RLUSD on its native XRP Ledger while simultaneously burning $100 million on the Ethereum network, resulting in a $100 million net supply shift.
The strategic move comes as the stablecoin's total on-chain market cap reached a new all-time high of $1.7 billion, according to data from Token Terminal. The data provider also noted that the RLUSD supply on the XRP Ledger has surged by approximately 100 percent in the past quarter to about $660 million.
Despite the recent minting, the majority of RLUSD's circulating supply, roughly 80-82 percent, continues to reside on the Ethereum blockchain. Ripple has previously announced plans to expand RLUSD's presence to several Ethereum Layer-2 networks, including Optimism and Base, using Wormhole as a bridging solution to mitigate concentration risk.
This rebalancing appears to be a strategic effort by Ripple to bolster liquidity and utility for RLUSD on its native XRP Ledger. The move could be a precursor to enhancing the XRPL DeFi ecosystem and supporting the company's core cross-border payment products. Growing institutional interest is also evident, with digital asset custody provider Copper recently adding RLUSD to its Stablecoin Rewards Program, allowing institutional clients to earn a yield on their holdings.
This article is for informational purposes only and does not constitute investment advice.
