Ripple burned 53 million RLUSD tokens across XRP Ledger and Ethereum platforms in a strategic supply management move.
The burned RLUSD, backed by U.S. Treasury bills, highlights Ripple's commitment to transparency and regulatory compliance.
Ripple’s RLUSD stablecoin launch hinges on New York's regulatory approval, marking a pivotal moment for the stablecoin market.
Ripple has burned 53 million RLUSD tokens in a series of strategic transactions across the XRP Ledger and Ethereum platforms. The burned tokens, valued at approximately $54.17 million, are seen as part of Ripple’s broader efforts to manage supply and enhance demand for its upcoming stablecoin launch.
Token Burns Split Between XRP Ledger and Ethereum
The first transaction, worth 40.17 million RLUSD, occurred on the XRP Ledger. This was followed by a burn of 14 million RLUSD on Ethereum. By leveraging both platforms, Ripple underscores its commitment to ensuring the stability and scalability of RLUSD across its dual blockchain ecosystem.
https://twitter.com/RL_Tracker/status/1857966105744040094
RLUSD Backed by Robust Reserves
RLUSD, Ripple’s forthcoming USD-backed stablecoin, is designed to offer secure and transparent value. It is backed by a mix of short-term U.S. Treasury bills, cash equivalents, and dollar deposits. To bolster market confidence, Ripple has committed to monthly reserve certifications conducted by BPM, a San Francisco-based independent accounting firm.
Ripple’s RLUSD stablecoin is operationally ready, according to the company. However, its official launch remains contingent on approval from the New York Department of Financial Services (NYDFS). Ripple has been working to align with regulatory requirements, which signals a significant step toward compliance in the evolving stablecoin market.
Market Reactions and Sentiment
The token burn has sparked discussions about Ripple’s strategy to optimize RLUSD’s supply ahead of its launch. Market participants view the burn as a confidence-boosting measure, reflected in the broader Ripple ecosystem. XRP’s market sentiment has also seen a positive shift, with the token’s price benefiting from renewed investor optimism.
