San Francisco-based blockchain firm Ripple has continued to manage its stablecoin supply to control liquidity and retain value for the asset.
This time around, Ripple has minted an additional 2,000,000 RLUSD on the Ethereum network in a new transaction showcased by the Ripple Stablecoin Tracker on Thursday, April 9.
While RLUSD maintains an equal value with the U.S. dollar, the new RLUSD supply on Ethereum was worth about $2 million, minted with a gas fee of about 0.0000195 ETH.
A detail about the transaction shows that Ripple minted the tokens from a null address and then transferred them to the destination wallet 0xFbcA8B5f…0Db600BB6.
Apparently, the move is the standard process used to bring new tokens into circulation before they are distributed across supported blockchains.
Why is Ripple minting RLUSD?
Since the launch of RLUSD about a year ago, Ripple has remained consistent with the steady removal and addition of the stablecoin across the XRP Ledger and the Ethereum blockchain.
Its decisive move to continuously deflate the RLUSD supply and also mint new tokens on a daily basis has continued to stir curiosity among users.
While many questions remain unanswered, market participants have drawn speculation that Ripple conducts these activities to effectively manage the asset’s liquidity as it continues to push its adoption among enterprises looking to integrate blockchain technology.
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Notably, the minting of new RLUSD tokens specifically signals growing liquidity and treasury rebalancing by Ripple Treasury to enable the platform to strictly adhere to accountability.
On the other hand, it could also mean that Ripple is preparing its stablecoin for increased usage across trading platforms and payment infrastructure as it continues to expand its partnerships, with enterprises looking to integrate digital assets — especially stablecoins — into their payment systems.
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