XRP News Today: Ripple Burns 20 Million RLUSD Tokens Amid Stablecoin Redemptions

Ripple has ignited a wave of discussion within the crypto community by burning 20 million RLUSD, its U.S. dollar-backed stablecoin. The announcement, made by crypto analyst Xaif on X, revealed that the tokens were permanently removed from circulation, sparking a range of reactions from the XRP Army. While some users celebrated the move as a sign of ecosystem maturity, others were left confused about the purpose and mechanics behind stablecoin burns.

RLUSD is Ripple’s enterprise-grade stablecoin, launched in late 2024 to offer secure, on-chain liquidity tied 1:1 to the U.S. dollar. Like other fiat-backed stablecoins, RLUSD is minted when users deposit USD and burned when users redeem their tokens for fiat. This ensures the circulating supply always matches the funds held in reserve. The recent 20 million token burn suggests that large-scale redemptions occurred, prompting the removal of an equivalent amount of RLUSD from the market. Though Ripple has not issued an official statement, the burn appears to be part of regular supply adjustments aimed at maintaining the stablecoin’s peg and preventing oversupply. This activity is typical in stablecoin ecosystems and shows that RLUSD is working as designed, enabling smooth entry and exit for users while maintaining full backing and transparency.

Despite the technical soundness of the burn, the move drew a flurry of responses from the XRP community, ranging from curiosity to criticism. In Xaif’s post, several users voiced confusion about the implications. Alpha Whisky asked, “Why would RLUSD burn? What’s going on?”—a question that captured the general sentiment among those unfamiliar with stablecoin operations. Crypto Enthusiast added, “Makes no difference with RLUSD—it can be minted right?” suggesting that the burn may have little long-term significance. Another user, michelle511, questioned whether burning was even possible for fiat-pegged tokens: “How can stablecoins get burned? They’re tied to the US$?” This reflects a widespread misconception. While RLUSD is tied to the dollar, it doesn’t mean the supply is fixed. Supply changes dynamically based on user deposits and redemptions. When users exchange RLUSD for cash, the returned tokens are destroyed to preserve the 1:1 ratio.

The discussion quickly shifted toward XRP itself. Normandy King commented, “Wish they burn XRP, not RLUSD,” echoing a common frustration among long-time XRP holders. Many in the community have long advocated for reducing XRP’s large circulating supply, especially given the ongoing monthly unlocks from Ripple’s escrow. However, RLUSD and XRP serve very different purposes. RLUSD is a stable means of exchange, ideal for enterprise settlements and DeFi transactions that require predictability. In contrast, XRP is utilized for providing on-chain liquidity and facilitating cross-border transactions by bridging fiat currencies. Burning RLUSD doesn’t directly impact XRP’s supply or price, but it signals that Ripple’s broader ecosystem is becoming more active and efficient.

The 20 million RLUSD token burn has sparked mixed reactions within the XRP community, but some see it as a positive development. It shows that the stablecoin is being used as intended, issued when needed, redeemed when not, and carefully adjusted to meet real demand. As RLUSD adoption grows, such burns will likely become more common. Rather than being a cause for concern, these events underscore Ripple’s commitment to transparency and sound monetary management within its ecosystem. In the absence of official commentary from Ripple, speculation is inevitable. But for those who understand stablecoin mechanics, the message is clear: RLUSD is alive, active, and functioning with the reliability it promised at launch. As Ripple continues expanding its financial infrastructure, both RLUSD and XRP will play complementary roles—one offering stability, the other liquidity. And while the debate continues, the XRP Army remains on high alert, watching every move Ripple makes.