Ripple Labs has incinerated some of its USD stablecoin (RLUSD) supply from the Ethereum network. A community account that monitors activities on the ledger, Ripple Stablecoin Tracker, reported that a total of 999,965 RLUSD were removed from circulation.
Ripple continues delicate balance of RLUSD supply
Notably, the burn exercise occurs in Ripple’s ecosystem during redemptions, where users exchange tokens for dollar reserves. The event effectively reduces RLUSD’s circulating supply and helps maintain the 1:1 dollar peg ratio of the stablecoin.
The burn of nearly $1 million worth of RLUSD highlights how the treasury is managing the circulating supply. The treasury constantly monitors the market and responds to increased demand dynamics by minting new RLUSD.
Within the last 14 days, Ripple minted 20 million RLUSD on the Ethereum blockchain to meet the increased demand in the broader crypto ecosystem. Periodic fresh minting remains Ripple’s way of regulating the supply end of the stablecoin.
This tightly controlled system allows for seamless stablecoin operation and has been responsible for Ripple USD stablecoin’s increased growth on the crypto market. RLUSD currently has a market capitalization of $1.58 billion.
Ripple’s USD had hit the $1.5 billion milestone in February 2026 following steady demand for RLUSD in the crypto space. RLUSD has continued to enjoy institutional demand for real-time settlement despite broader crypto market fluctuations.
Additionally, Ripple has been aggressive in pushing RLUSD in the crypto space. In January 2026, it achieved a spot listing on Binance. The integration of the asset on the world’s largest exchange opened up deep liquidity pairs for RLUSD and made it a viable trading asset.
Institutional partnerships could push RLUSD toward $2 billion
Despite the current burn exercise, Ripple’s USD stablecoin is steady on its journey toward the $2 billion supply milestone. It is worth mentioning that the burn exercise does not derail RLUSD’s growth trajectory. Interestingly, RLUSD’s rapid growth to $1.5 billion consisted of regulated minting and burns.
RLUSD currently stands less than $500 million away from attaining the milestone, and its recent strategic partnership with traditional financial institutions could act as a catalyst to achieving it.
In the last week of February 2026, Deutsche Bank adopted Ripple’s technology for cross-border payments. Additionally, Société Générale also expanded its euro stablecoin into the XRP Ledger. Meanwhile, the market is anticipating a possible collaboration with SBI Holdings of Japan.
Some optimists in the Ripple community are betting RLUSD could hit the $2 billion mark in Q2, 2026.
Source: https://u.today/ripple-reduces-rlusd-supply-on-ethereum-by-one-million-tokens
