Ripple is actively enhancing the robustness of its RLUSD stablecoin through significant token burns aimed at maintaining its stability and market presence. This latest effort represents the largest burn in several weeks, as the company seeks to manage supply and bolster the adoption of RLUSD.
On September 9, Ripple executed the incineration of over 2.71 million RLUSD tokens, a notable increase compared to prior reductions. Recent data indicates that the company had previously burned 1 million RLUSD tokens twice on September 3 and another million on August 29. These burn events are part of Ripple’s systematic approach to stabilize RLUSD, where new tokens are minted in response to rising demand, while excess tokens are eliminated through burns when funds return to reserves. This strategic management helps keep RLUSD closely aligned with its one-dollar peg.
As a result of these recent actions, RLUSD has seen a spike in trading activity. Currently, it maintains a market valuation exceeding $728 million and is trading near its intended dollar value. In the past 24 hours alone, trading volume surged to $88.51 million, marking an impressive 88% increase according to Coinmarketcap data. RLUSD’s robust adoption has positioned it among the top 10 stablecoins based on market capitalization.
In a significant development, VivoPower International has integrated RLUSD into its payment systems through its electric vehicle subsidiary, Tembo. This move aims to minimize transaction costs and improve the speed of international payments, especially in developing markets where traditional payment systems often impose high fees. Notably, attorney Bill Morgan highlighted that while Tembo is accepting RLUSD payments, it is not currently accepting XRP.
In addition to its developments within the stablecoin market, Ripple is also making strides in Europe. The company has formed a partnership with BBVA, Spain’s second-largest bank, to deliver crypto custody technology. This collaboration will enhance BBVA’s newly launched retail crypto trading and storage services for cryptocurrencies such as Bitcoin and Ether, as well as other tokenized assets.
As Ripple continues to refine its strategy and expand its partnerships, the growing adoption of RLUSD and its efforts in the European market signify a promising trajectory for the company in the evolving landscape of digital currencies.
