Ripple Mints Additional 600,000 RLUSD Tokens, Boosting Supply

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Increase the number of RLUSD tokens by 600,000, thereby expanding the supply and ensuring ample collateral, which helps manage potential price fluctuations during the initial release.

Ripple, a prominent enterprise blockchain company, has just produced an extra 600,000 units of RLUSD tokens. This information was disseminated via the Ripple Stablecoin Tracker account on social media platform X. The total number of RLUSD tokens in circulation has been expanded due to this minting operation.

Ripple’s reserve currently stands at approximately $83 million, which supports $77.2 million worth of RLUSD tokens that have been issued so far. This means that the reserves are 7% greater than the amount of RLUSD tokens in circulation, indicating an over-collateralization of Ripple. In essence, the token is safeguarded by this excess collateralization.

Previously, Ripple’s RLUSD token was offered on the cryptocurrency exchange, Independent Reserve (IR), which holds a license in Singapore. On December 22, 2024, IR announced that customers in Singapore would be able to trade RLUSD. This listing marks an essential milestone for Ripple as it aims to expand the usage of its stablecoin within the global market.

Ripple Focuses on Long-Term Stability for RLUSD

David Schwartz, the Chief Technology Officer at Ripple, recently expressed concerns about the stability of RLUSD’s price. In a post on X dated December 15th, Schwartz warned that there could be potential supply shortages when the coin is launched due to the high demand for RLUSD, which initially has a relatively low supply. This may cause some instability in pricing during the initial phase of the coin’s market release.

In simpler terms, Schwartz pointed out that digital currencies like RLUSD can be unpredictable when first introduced unless they’re backed by a stable asset. He explained that it takes some time for supply and demand to balance out. However, he added that Ripple is mindful of this issue and will address it as more people start using RLUSD.

Consequently, Ripple is advancing the circulation and utilization of its XRP-dollar (RLUSD) token. The market presence of this token is expanding as more tokens are produced and RLUSD is listed on platforms such as Independent Reserve and Ripple. Although the price may still be early and volatile, Ripple has left no stone unturned in ensuring the unwavering stability and growth of RLUSD in the upcoming months.

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2025-01-05 20:38