Ripple Mints Additional 600,000 RLUSD Tokens, Boosting Supply

Ripple mints 600,000 more RLUSD tokens, boosting supply and over-collateralization, while addressing potential price volatility at launch.

Ripple, a leading enterprise blockchain company, has recently minted an additional 600,000 RLUSD tokens. The information was shared through the Ripple Stablecoin Tracker account on X, the social media platform. The total supply of RLUSD tokens has been increased through this minting activity.

Ripple’s reserve currently is approximately $83 million. This backs $77.2 million in RLUSD tokens so far issued. That means we’re over-correlated by 7 per cent, where Ripple has more reserves than RLUSD in circulation. The token is protected by this over-collateralization.

Ripple’s RLUSD token had previously been made available on the Singaporean licensed cryptocurrency exchange, Independent Reserve (IR). On December 22, 2024, customers in Singapore would be able to trade RLUSD, it announced. The listing is an important step for Ripple to grow the use of its stablecoin in the international market.

Ripple Focuses on Long-Term Stability for RLUSD

Ripple’s Chief Technology Officer, David Schwartz also recently talked about concerns on RLUSD stability of price. In a December 15 post on X, Schwartz noted there might be ‘supply shortages’ when the coin launches. At first, it may not stay put because the demand for RLUSD might be high as the supply is relatively low at the beginning, he noted. This will lead to some pricing fluctuations at the start of the coin’s market launch.

Stablecoins like RLUSD can be volatile when introduced to the market if not backing against a stable asset, said Schwartz. This is where new coins sit, he said, but supply and demand will eventually stabilize. However, he said that Ripple is already aware of this challenge, and will take action as the adoption of RLUSD continues to grow.

Therefore, Ripple is further developing the distribution and application of its RLUSD token. The token’s presence in the market is increasing with the production of more tokens and listing of RLUSD on platforms like Independent Reserve, Ripple. However early and even volatile the price might be, the company has left no stone unturned in guaranteeing uncompromising stability and growth of RLUSD in the coming months.