The post Why Is Ripple Burning Millions of RLUSD Tokens? appeared first on Coinpedia Fintech News
Ripple is making strategic moves to maintain the strength and stability of its RLUSD stablecoin, carrying out its largest token burn in weeks.
Meanwhile, RLUSD adoption is picking up, with businesses and banks beginning to use it for payments and other services.
Ripple Executes Largest RLUSD Burn in Weeks
According to data from Ripple Stablecoin Tracker, over 2.71 million RLUSD tokens were burned on September 9, marking the largest single burn in weeks after a series of reductions over the past two weeks.
According to the tracker, the company burned 1 million RLUSD twice on September 3 and another million on August 29.
These burns are part of Ripple’s standard process for managing RLUSD. The company issues new tokens when demand rises and removes excess supply through burns when dollars return to its reserves, ensuring that RLUSD remains fully backed and stays close to its one-dollar peg.
RLUSD Trading Volume Spikes
RLUSD is currently trading near $1, with a market capitalization of over $728 million. Its trading volume has surged to $88.51 million, up 88% in the past 24 hours, as per data from Coinmarketcap. RLUSD is also among the top 10 stablecoins by market cap.
VivoPower Adopts RLUSD
VivoPower International recently announced that its electric vehicle subsidiary, Tembo, now accepts payments in RLUSD stablecoin. The company noted that customers in developing markets often face high fees and slow transfers. By integrating RLUSD, Tembo plans to make international payments faster and cheaper.
However, Attorney Bill Morgan notes that it is accepting only RLUSD payments, and not XRP itself. He also noted that although RLUSD exists on both the XRP Ledger and Ethereum, most of its supply is on Ethereum.
Ripple’s European Push
Meanwhile, Ripple is also making big moves in Europe. It has partnered with Spain’s second-largest bank, BBVA, to provide its crypto custody technology, supporting the bank’s new retail crypto trading and storage service for Bitcoin, Ether, and other tokenized assets.