A notable shift in Ripple’s stablecoin operations has been observed on-chain, with 20,000,000 RLUSD burned on Ethereum and an identical amount minted on the XRP Ledger (XRPL). The development, highlighted by blockchain analyst Vet via the Ripple Stablecoin Tracker on X, signals a strategic redistribution of RLUSD supply between the two supported networks.
On-Chain Activity Confirms the Movement
According to the Ripple Stablecoin Tracker feed, the RLUSD Treasury executed two significant transactions within minutes of each other. On Ethereum, 20 million RLUSD were permanently removed from circulation through a burn transaction, as verified by Etherscan records. Almost simultaneously, XRPSCAN data showed a fresh issuance of the same amount on the XRP Ledger.
This mirrored activity suggests an intentional reallocation of RLUSD liquidity, shifting stablecoin reserves away from Ethereum’s ERC-20 format and into XRPL’s native token infrastructure.
Looks like $RLUSD contingent is moved from ETH to the XRP Ledger.
Call it, The Rotation. pic.twitter.com/kaNITxxNkj
— Vet (@Vet_X0) August 11, 2025
Background on RLUSD
RLUSD, Ripple’s U.S. dollar-backed stablecoin, launched in December 2024 with deployments on both Ethereum and the XRP Ledger. The stablecoin was designed to leverage the settlement capabilities of XRPL while also offering compatibility with Ethereum’s expansive DeFi ecosystem.
Ripple retains full control over minting and burning RLUSD on both blockchains, enabling the company to manage the circulating supply dynamically across networks.
Since its launch, RLUSD has seen growing transactional momentum on XRPL, driven by lower fees, faster settlement times, and native integration with Ripple-powered payment solutions. The latest movement aligns with this growing XRPL-centric activity, potentially enhancing liquidity where demand is strongest.
Operational Implications
Redistributing stablecoin supply between chains is a standard treasury management practice for centralized issuers. By burning RLUSD on Ethereum and minting the equivalent amount on XRPL, Ripple can optimize liquidity for specific markets, reduce operational costs, and better position the stablecoin for active use in XRPL-based applications.
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While the on-chain evidence documents the transaction flow, Ripple has not issued a formal statement detailing the strategic intent behind this specific adjustment. Without official commentary, the shift can only be interpreted as a deliberate liquidity rebalancing rather than a permanent withdrawal from Ethereum.
Strategic Significance
For XRP Ledger participants, the additional RLUSD liquidity could improve depth in trading pairs, enhance payment settlement efficiency, and further integrate RLUSD into XRPL-native financial products. For Ethereum users, the burn represents a modest reduction in RLUSD availability, though the stablecoin remains supported on the network.
Vet’s timely detection of the movement underscores the growing role of independent blockchain trackers in providing transparency around issuer-controlled digital assets. These observations offer valuable insight into the operational strategies of major stablecoin providers like Ripple.
Outlook
The 20 million RLUSD reallocation marks one of the largest single supply adjustments since the stablecoin’s launch. If XRPL adoption trends continue, further shifts of this nature could follow, reinforcing XRPL’s position as the primary venue for RLUSD liquidity.
Until Ripple provides official confirmation, the move stands as a clear operational rotation — one that may have lasting implications for RLUSD’s on-ledger ecosystem.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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