XRP News Today: Ripple Shifts 20 Million RLUSD from Ethereum to XRP Ledger in Strategic Liquidity Move

Ripple has executed a significant on-chain reallocation of its U.S. dollar-backed stablecoin, RLUSD, by burning 20 million tokens on the Ethereum network and simultaneously minting an equivalent amount on the XRP Ledger (XRPL). The transaction, documented by the Ripple Stablecoin Tracker and analyzed by blockchain observer Vet, reflects a strategic liquidity shift between the two platforms. The burn of RLUSD on Ethereum was confirmed via Etherscan, while the minting activity was verified on XRPSCAN, indicating a coordinated move by Ripple’s treasury operations [1].

This development marks one of the largest single adjustments in RLUSD’s supply since its December 2024 launch. RLUSD was initially deployed on both Ethereum and XRPL, with the dual deployment aiming to leverage Ethereum’s broad DeFi ecosystem alongside the XRP Ledger’s fast and low-cost transaction infrastructure. Ripple maintains full control over the stablecoin’s minting and burning functions on both chains, allowing for dynamic supply adjustments in response to demand [1].

The shift appears to align with a broader trend of growing activity on the XRP Ledger. RLUSD has seen increasing usage on XRPL, driven by its native integration with Ripple’s payment solutions, faster settlement times, and lower fees compared to Ethereum. By reallocating liquidity to the XRP Ledger, Ripple may be responding to stronger user engagement on its home blockchain, while also optimizing the stablecoin’s operational efficiency [1].

While Ripple has not officially commented on the move, analysts interpret it as a deliberate liquidity rebalancing rather than a permanent exit from Ethereum. The XRP Ledger’s infrastructure advantages—particularly its settlement speed and lower costs—could make it a more attractive environment for stablecoin transactions as adoption continues to rise. This could also support Ripple’s efforts to expand institutional adoption and integrate RLUSD into native financial products on XRPL [1].

The movement of RLUSD follows the conclusion of Ripple’s long-running legal dispute with the U.S. Securities and Exchange Commission (SEC). With this chapter behind the company, Ripple has redirected its focus toward product innovation and institutional partnerships. The shift to the XRP Ledger may signal a broader infrastructure strategy aimed at strengthening the platform’s appeal to financial institutions and cross-border payment providers [2].

The move also highlights the growing role of independent on-chain tracking tools in monitoring stablecoin activity. Observers like Vet have played a key role in identifying and publicizing such shifts, offering transparency into the operations of issuer-controlled tokens. This visibility allows the broader crypto community to better understand the strategic decisions made by major stablecoin providers [1].

Looking ahead, continued adoption of the XRP Ledger could lead to further reallocations of RLUSD liquidity, reinforcing its position as the primary venue for stablecoin activity. However, the long-term success of RLUSD will depend on user demand and institutional trust, particularly in light of Ripple’s recent regulatory developments. The shift to XRPL positions the stablecoin to benefit from the platform’s efficiency, but adoption will ultimately be driven by market dynamics [1].

Source:

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

https://coinmarketcap.com/community/articles/689b917df5c8bb5c385fcb7b/

[2] XRP Price Prediction As SEC Officially Ends Ripple Case

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