Ripple has taken significant steps to stabilize and strengthen its RLUSD stablecoin by executing its largest token burn in weeks. This move is part of the company’s robust strategy for ensuring liquidity and maintaining the token’s value near its one-dollar peg, amidst growing market activity and adoption by businesses worldwide.
Ripple Executes Strategic Token Burn
On September 9, Ripple burned over 2.71 million RLUSD tokens, marking the most substantial single burn in recent weeks. This follows consecutive burns of 1 million tokens each on both September 3 and August 29. These periodic burns are part of Ripple’s standardized procedures for managing RLUSD supply. By removing excess tokens from circulation as US dollars return to reserves, Ripple ensures its stablecoin remains fully backed and reliable for users.
Market Activity is Booming
The token burn aligns with soaring market activity. RLUSD currently boasts a market capitalization of over $728 million and has seen its trading volume leap by an impressive 88% in just 24 hours, reaching $88.51 million, according to CoinMarketCap. This surge places RLUSD among the top 10 stablecoins by market cap, further solidifying its position in the highly competitive stablecoin market.
Business Adoption Fuels Growth
The growing adoption of RLUSD by businesses around the world is another driver behind its rising popularity. Most notably, VivoPower International announced that its electric vehicle subsidiary, Tembo, will now accept RLUSD as payment. This decision aims to provide customers in developing markets with faster and cheaper international payment solutions, bypassing high fees and delays typical of traditional financial systems.
However, industry expert Attorney Bill Morgan noted that Tembo currently accepts only RLUSD payments and not Ripple’s native cryptocurrency, XRP. Furthermore, while RLUSD is available on both the XRP Ledger and Ethereum blockchain, the majority of its supply resides on Ethereum.
Ripple Expands Influence in Europe
Ripple continues to grow its footprint globally, with Europe being a key focus. The company has partnered with Spain’s second-largest bank, BBVA, to integrate its crypto custody technology. This collaboration will facilitate BBVA’s new retail crypto trading service, allowing customers to buy, sell, and securely store Bitcoin, Ethereum, and other tokenized assets.
Discover Ripple’s RLUSD Innovations
If you’re looking to explore how RLUSD is revolutionizing cross-border payments and rapidly climbing the ranks of stablecoins, consider diving deeper into the blockchain ecosystem. Interested in other reliable crypto-backed products? Checkout Ledger Nano X, a premium hardware wallet offering secure storage for your digital assets.
