XRP Update: Ripple Resumes Minting with 6.5 Million RLUSD After 7-Day Pause

4

Ripple Labs has resumed the minting of its RLUSD stablecoin, pegged to the U.S. dollar, following a brief seven-day halt in issuance across both the XRP Ledger (XRPL) and Ethereum blockchains. According to the Ripple Stablecoin Tracker, the company has added 6.5 million RLUSD into circulation. This marks the first minting after a pause that lasted from March 7, when 2.3 million RLUSD was minted at the RLUSD Treasury. Ripple has not provided specific reasons for the brief suspension of minting or the rationale for resuming it, but the decision has undoubtedly sparked attention within the cryptocurrency and stablecoin markets.

The recent minting of RLUSD took place on the Ethereum blockchain, one of only two blockchains where Ripple issues RLUSD, with the other being the XRP Ledger. The increased supply of RLUSD highlights rising demand for the stablecoin, which has been steadily growing since its introduction. The recent issuance increases the total circulating supply of RLUSD to approximately 141.49 million, a notable expansion in its presence in the crypto space. Ripple’s CTO, David Schwartz, has acknowledged that the company might halt or even reverse the minting process if required, following updates to the U.S. regulatory framework for stablecoins, particularly the GENIUS Act. This act, introduced by Senator Bill Hagerty, mandates that stablecoin issuers implement technology capable of freezing or seizing funds when legally required, ensuring compliance with regulatory authorities.

Stablecoins, like RLUSD, have become an essential component of the cryptocurrency market, providing a safe haven for traders looking to hedge against market volatility. Although RLUSD is a relatively new entrant, it has gained significant traction, with increasing trading volumes, placing it ahead of competitors such as Ethena USDe and Circle’s EURC. Ripple’s ongoing efforts to list RLUSD on major platforms like Revolut and Zero Hash further contribute to the token’s growing adoption. These strategic partnerships position RLUSD to become a strong contender in the competitive stablecoin market, as Ripple continues to expand its reach in the broader digital asset ecosystem.

While RLUSD’s expansion enhances liquidity on the Ethereum blockchain, it could also indirectly influence XRP, as both tokens are integral to Ripple’s ecosystem. However, the direct effect of RLUSD’s growth on XRP’s price remains uncertain, particularly in light of the volatile market conditions and ongoing regulatory scrutiny. Investors are also closely monitoring the potential approval of an XRP exchange-traded fund (ETF), which could impact XRP’s market performance. As of now, XRP’s market capitalization stands at $136.58 billion, marking a 4.84% increase from the previous day. Analysts like Ali Martinez remain optimistic about XRP’s potential for a rally, with price predictions suggesting it could reach as high as $15 in the current market cycle, despite recent fluctuations.