Ripple Halts RLUSD Minting for 21 Days Amid Strategic Supply Control

Ripple Labs has not minted any new Ripple USD (RLUSD) tokens for the past 21 days. According to Ripple Stablecoin Tracker on X, the last minting event occurred 41 days ago, on April 25, when the company created 11.5 million RLUSD at its Treasury. Despite an uptick in crypto market activity during this time, Ripple has refrained from increasing RLUSD supply.

Notably, Bitcoin (BTC) reached an all-time high of $111,970 during this same period. Many other digital assets also experienced significant price movements. Typically, such conditions lead to higher demand for stablecoins like RLUSD, which investors use to secure positions or make quick purchases. However, Ripple did not respond with new minting, possibly because the current supply already satisfies market demand.

Ripple’s Strategic Approach to Stablecoin Supply

Ripple has consistently stated that it will act strategically in the stablecoin space. The recent pause in RLUSD minting could reflect the company’s intention to control supply and maintain price stability. By limiting minting, Ripple positions RLUSD as a stable alternative in a market already dominated by established players like Tether (USDT) and Circle (USDC).

Despite the minting pause, RLUSD is not losing relevance. On the contrary, its adoption appears to be expanding. Recently, Ripple received regulatory approval from the Dubai Financial Services Authority (DFSA). This approval allows RLUSD to operate within Dubai’s International Financial Centre, which houses over 7,000 companies.

RLUSD Gains New Exchange Listing

In addition to regulatory progress, RLUSD recently secured a listing on the crypto exchange Bitget. Users can now deposit RLUSD and trade it against both USDT and USDC. This new listing enhances RLUSD’s liquidity and offers more avenues for users to interact with the stablecoin.

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While Ripple has not minted new RLUSD in over 21 days, this appears to be a calculated move rather than a sign of stagnation. The company seems focused on maintaining a balanced supply while advancing RLUSD’s global footprint. With increasing exchange support and regulatory recognition, RLUSD continues to gain ground in the competitive stablecoin market.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.