Ripple Burns 12M RLUSD on XRP Ledger, Bridges Liquidity to Ethereum

Sean Williams
RLUSD

A noteworthy transaction involving Ripple USD (RLUSD), Ripple’s recently launched stablecoin, has been detected by the Ripple Stablecoin Tracker. The community-driven account highlighted the near-simultaneous burning of 12 million RLUSD on the XRP Ledger and the subsequent minting of the same amount on the Ethereum network late Tuesday. This move, the largest single burn recorded on the XRPL since RLUSD’s debut, signals a strategic cross-chain liquidity transfer.

Data from XRPScan confirms that 12 million RLUSD were incinerated at precisely 11:05 UTC. Typically, such “burn” transactions permanently remove stablecoins from circulation, a mechanism often employed to manage supply and maintain the 1:1 peg with the US dollar during user redemptions. This particular burn is the most substantial since Ripple’s initial burn of 46.7 million RLUSD in anticipation of the stablecoin’s market launch in December.

Ethereum Network Sees Influx of RLUSD Following XRP Ledger Burn

Intriguingly, within a minute of the XRP Ledger burn, the RLUSD Treasury replenished the exact 12 million tokens on the Ethereum network. Etherscan data reveals the transfer of this amount from a null wallet to a multisignature wallet (“0xFbcA”) associated with the Ripple Deployer. This rapid sequence of burning and minting strongly suggests a deliberate effort to shift liquidity between the two prominent blockchain networks.

Cross-Chain Liquidity Bridging Underpins Strategic Move

XRPL dUNL validator Vet corroborated the nature of the transaction, confirming in a tweet that a customer initiated the burn and subsequent minting to move the stablecoin from the XRP Ledger to Ethereum. This process effectively bridges liquidity between the blockchains without altering the total circulating supply of RLUSD. While both chains hold significant portions of the stablecoin’s $294.4 million total cap (according to CoinMarketCap), the Ethereum network currently holds a dominant 68%, valued at $199.6 million.

This cross-chain activity also coincides with the recent listing of RLUSD on Aave V3’s Ethereum core market on April 21, enabling users to supply and borrow the stablecoin on the platform. This suggests a strategic push to enhance RLUSD’s utility and accessibility within the Ethereum ecosystem.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Ripple’s RLUSD Joins Aave V3 with $50M Cap, Targets USDT and USDC in DeFi Push

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