Ripple Shifts RLUSD Stablecoin Supply to Ethereum

Ripple has transferred 2 million RLUSD stablecoins to the Ethereum network, a move that reduces the stablecoin's supply on the XRP Ledger (XRPL) and increases its presence on Ethereum [2, 3]. This cross-chain shift highlights Ripple's strategic focus on Ethereum for its stablecoin, despite developing its own blockchain and financial services [3].

RLUSD Supply Shifts to Ethereum

Ripple minted an additional 2 million RLUSD on the Ethereum network on April 9 [2]. This transaction was initiated from a null address and transferred to a destination wallet, a standard process for bringing new tokens into circulation before distribution across supported blockchains [2]. The newly minted RLUSD on Ethereum is valued at approximately $2 million [2]. This move coincides with a reduction in RLUSD supply on the XRP Ledger, indicating a strategic repositioning by Ripple [3].

Since its launch in December 2024, RLUSD has reached a market capitalization exceeding $1.5 billion [1]. Ripple has consistently managed the stablecoin's supply, both removing and adding tokens across the XRP Ledger and Ethereum [2]. This continuous activity is seen by market participants as an effort to manage liquidity and promote adoption among enterprises integrating blockchain technology [2]. The minting of new RLUSD tokens specifically suggests growing liquidity and treasury rebalancing by Ripple Treasury to ensure accountability [2]. It could also signal preparation for increased usage across trading platforms and payment infrastructure as Ripple expands partnerships with enterprises [2].

XRP's Performance and Utility

While Ripple expands its stablecoin operations, its native token, XRP, has lagged behind Bitcoin and Ethereum in price appreciation [1]. XRP's all-time high remains $3.84, set on January 4, 2018 [1]. At approximately $1.07 today, XRP is 72% below that peak [1]. In contrast, Bitcoin reached $126,000 in October 2025, and Ethereum hit a new record of $4,950 in August 2025 [1].

The primary reason for XRP's underperformance is its increased circulating supply [1]. At its 2018 peak, about 34 billion XRP were in circulation, giving it a market cap of $130 billion [1]. Today, approximately 63 billion XRP are circulating, meaning it would require a market cap of roughly $242 billion to reach its previous high of $3.84 [1]. Ripple releases up to a billion XRP from escrow monthly, though most are relocked, contributing to the growing supply [1]. Unlike Bitcoin's halvings or Ethereum's staking and transaction fee burns, XRP lacks mechanisms to significantly reduce its circulating supply [1].

Ripple's business growth, including acquisitions like Hidden Road and GTreasury, which now manage $12.5 trillion in corporate money, primarily generates fees in dollars [1]. These businesses largely use RLUSD for settlement, with XRP only paying a minimal 0.00001 network fee per transaction [1]. This is because institutions prefer the stability of a dollar-pegged asset like RLUSD over the volatility of XRP, which can move 40% in a year [1].

What to watch

• RLUSD supply movements: Monitor further shifts in RLUSD supply between the XRP Ledger and Ethereum, which could indicate Ripple's evolving blockchain strategy [2, 3].
• XRP Ledger lending protocol: Watch for validator approval of the XRP Ledger's lending protocol, which would allow holders to lock XRP into vaults, potentially reducing circulating supply [1].
• Ripple's Federal Reserve master account application: The pending application for a Federal Reserve master account could strengthen the argument for using XRP as a bridge currency in Ripple's operations [1].

Ripple's strategic shift of RLUSD supply to Ethereum underscores the network's dominance in the stablecoin market, while also highlighting the ongoing challenge for XRP to regain its prior market valuation amidst increasing supply and limited utility in Ripple's core financial services.