Ripple's $50M RLUSD Mint on Ethereum Narrows XRP Ledger Gap
In brief
- Ripple minted 50 million RLUSD on Ethereum, raising total supply to $1.63 billion
- Ethereum RLUSD balance now trails XRP Ledger by only $5.7 million
- XRP Ledger saw $42.3M net RLUSD outflow; Ethereum gained $173.4M over 30 days
- Corporate clients and banks prefer Ethereum's ERC-20 infrastructure for stablecoin holdings
Stablecoin Supply Converging Across Networks
Ripple issued another batch of 50 million RLUSD tokens on the Ethereum network in what marks a significant rebalancing of liquidity. Following this massive injection, the coin's total circulating supply reached $1,629,275,517. The supply gap between Ethereum and XRP Ledger has compressed dramatically. The gap has narrowed to a symbolic $5.7 million, suggesting Ethereum could overtake Ripple's native network within days based on recent trends.
Over the past month, capital flows tell a stark story. Over the past 30 days, $42.3 million more RLUSD has been burned on XRP Ledger than issued, a net liquidity outflow. Over the same period, the stablecoin balance on Ethereum increased by $173.4 million.
"Capital is literally flowing from one network to the other." — U.Today analysis
Why Ethereum Wins
For large businesses and decentralized finance (DeFi), Ethereum remains the world's leading blockchain platform, where the majority of stablecoin volumes are concentrated. The reasons are structural. Corporate clients and banks prefer the proven ERC-20 infrastructure and RLUSD's predictable exchange rate. XRP Ledger, by contrast, faces headwinds. XRP's high volatility may be making it less suitable for cross-border settlements.
Ripple is pragmatically adapting to market demand by pumping liquidity into Ethereum, even if this undermines XRP Ledger's monopoly in the eyes of its supporters. The company's stablecoin strategy now follows institutional capital, not the other way around. This shift reflects the broader reality: Ethereum's ecosystem has become the default settlement layer for enterprise stablecoin activity.
Frequently asked questions
Why is Ripple moving RLUSD from XRP Ledger to Ethereum?
Institutional clients and banks prefer Ethereum's proven ERC-20 infrastructure for stablecoin settlements. Over 30 days, XRP Ledger lost $42.3 million in RLUSD while Ethereum gained $173.4 million, showing where market demand has shifted. Ripple is following capital flows, not leading them.
What's the current supply gap between RLUSD on Ethereum and XRP Ledger?
The gap has narrowed to just $5.7 million, with Ethereum potentially overtaking XRP Ledger within days. Ripple's latest 50 million token mint on Ethereum pushed total circulating supply to $1.63 billion.
Why might XRP Ledger be less attractive for stablecoin settlements?
XRP's high volatility makes it less suitable for cross-border settlements compared to Ethereum's stable infrastructure. Corporate clients prioritize predictability and proven ERC-20 standards over network loyalty.
