XRP News Today: Ripple Shifts 20M RLUSD from Ethereum to XRP Ledger in Major Liquidity Move

Ripple recently executed a significant liquidity shift by burning 20 million RLUSD tokens on the Ethereum blockchain and simultaneously minting an equal amount on the XRP Ledger (XRPL). The transactions were confirmed via Etherscan for the Ethereum burn and XRPSCAN for the XRP Ledger minting, underscoring a strategic reallocation of stablecoin supply between the two networks [1]. The operation, noted by blockchain analyst Vet through the Ripple Stablecoin Tracker feed on X, represents one of the largest single adjustments in RLUSD’s supply since its launch in December 2024 [1].

RLUSD was initially deployed on both Ethereum and the XRP Ledger to combine Ethereum’s robust DeFi ecosystem with the XRP Ledger’s faster settlement times and lower transaction costs. Ripple maintains full control over RLUSD’s minting and burning functions on both chains, enabling it to manage supply dynamically in response to demand and network usage [1]. The recent movement reflects a growing trend of RLUSD adoption on the XRP Ledger, where its native integration with Ripple’s payment infrastructure and cost advantages have made it increasingly attractive for transactions.

Analysts view this shift as a liquidity rebalancing effort rather than an exit from Ethereum. The XRP Ledger’s infrastructure—characterized by near-instant settlement and negligible fees—positions it as a compelling platform for stablecoin activity. This move may support Ripple’s broader strategy to expand institutional adoption and embed RLUSD into native financial products on the XRP Ledger [1]. The timing of the shift aligns with Ripple’s post-SEC lawsuit focus on product development and institutional partnerships, signaling a strategic emphasis on strengthening the XRP Ledger as a core component of its infrastructure.

The reallocation of RLUSD liquidity also highlights the role of on-chain tracking tools in maintaining transparency. Observers have used platforms like Ripple Stablecoin Tracker and XRPSCAN to monitor and report such movements, providing the crypto community with greater insight into the operations of major stablecoin issuers [1]. In today’s regulatory climate, where trust and accountability are crucial for institutional adoption, such transparency is particularly valuable.

The impact on Ethereum is minimal, as RLUSD remains available and continues to support its DeFi ecosystem. However, the XRP Ledger gains a notable boost in liquidity, which can enhance market depth and transactional efficiency. Ripple’s ability to shift reserves where demand is higher demonstrates the flexibility of centralized stablecoin issuance and underscores the importance of multi-network strategies in the evolving crypto landscape [1].

The success of RLUSD on the XRP Ledger will depend on continued user engagement and institutional confidence in Ripple’s post-regulatory positioning. While the XRP Ledger’s efficiency provides a strong foundation, market dynamics will ultimately determine the stablecoin’s long-term adoption. Ripple’s decision to prioritize its native blockchain aligns with its ongoing efforts to reinforce the XRP Ledger as a central element of its financial infrastructure strategy.

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/