XRP News Today: Ripple Shifts 20M RLUSD from Ethereum to XRP Ledger in Strategic Rotation

Ripple’s U.S. dollar-backed stablecoin, RLUSD, has undergone a notable on-chain reallocation, with 20 million units burned on Ethereum and simultaneously minted on the XRP Ledger. The activity was documented through the Ripple Stablecoin Tracker and verified via Etherscan and XRPSCAN, confirming that the RLUSD supply was redistributed between the two networks. This strategic move, referred to as “The Rotation,” highlights an intentional shift in liquidity management, favoring the XRP Ledger’s native infrastructure over Ethereum’s ERC-20 format [1].

The RLUSD stablecoin, launched in December 2024, was initially deployed on both blockchains to offer users access to Ethereum’s DeFi ecosystem and the XRP Ledger’s faster, lower-cost settlement capabilities. Ripple maintains full control over minting and burning RLUSD, allowing the company to dynamically adjust supply based on demand and network conditions. The recent reallocation follows increasing transactional activity on the XRP Ledger, where RLUSD has seen greater adoption due to its native integration and economic advantages [1].

Blockchain analyst Vet noted that the synchronized burn and mint operations occurred within minutes of each other, reinforcing the deliberate nature of the move. While Ripple has not publicly commented on the decision, on-chain evidence suggests a liquidity rebalancing effort aimed at optimizing the stablecoin’s availability where it is most actively used. This is a common practice among centralized stablecoin issuers, enabling them to align supply with user behavior and operational efficiency [1].

The shift may have broader implications for the XRP Ledger, as the addition of 20 million RLUSD could enhance liquidity in trading pairs and improve the settlement efficiency of XRPL-native financial applications. For Ethereum, the burn represents a minor reduction in RLUSD availability but does not signify a complete withdrawal from the network. Observers have emphasized that this appears to be a temporary operational adjustment rather than a long-term strategic pivot [1].

This development coincides with the SEC’s decision to close its case against Ripple in late July 2025, which has led to renewed market optimism around XRP. Analysts have pointed to rising trading volumes and speculative interest as potential indicators of continued institutional and retail adoption. Ripple’s recent product expansion, including applications for national bank trust charters, also suggests a broader institutional strategy to integrate XRP and RLUSD into mainstream financial systems [2].

By consolidating RLUSD on the XRP Ledger, Ripple is reinforcing its blockchain-first approach, leveraging the network’s cost-efficiency and performance to support stablecoin-based use cases. The move is expected to streamline operations, reduce dependency on external blockchains, and strengthen the XRP Ledger as a primary platform for Ripple’s financial solutions. As RLUSD adoption continues to grow, further reallocations of this nature may follow, reinforcing the ledger’s role in Ripple’s ecosystem [3].

Source:

[1] title: Ripple's RLUSD Contingent Is Moved from Ethereum to the XRP Ledger

url: https://timestabloid.com/ripples-rlusd-contingent-is-moved-from-ethereum-to-the-xrp-ledger/

[2] title: XRP News - Latest Ripple Blockchain News

url: https://cointelegraph.com/tags/xrp

[3] title: XRP Price Prediction As SEC Officially Ends Ripple Case

url: https://timestabloid.com/xrp-price-prediction-as-sec-officially-ends-ripple-case/