Ripple Mints $110M RLUSD After Sudden Supply Drop

TLDR

• Ripple minted 110.57 million RLUSD tokens on November 2, following a 28.7% decline in XRP Ledger stablecoin supply.
• Binance expanded RLUSD withdrawals across the XRP Ledger and Ethereum after its $6.34 billion security breach.
• Binance reported replacing 98% of affected token assets and pledged to cover customer losses.
• Ripple reportedly froze $40.5 million in stolen RLUSD, while native XRP lacks issuer-controlled freezing functions.

Ripple mints $110.57 million in RLUSD on the XRP Ledger, according to transaction data from November 2. Separately, Binance has resumed withdrawals following a $6.34 billion cryptocurrency hack. No direct link between the developments has been established by either company.

Ripple Mints Follow Sharp RLUSD Supply Decline

Ripple’s stablecoin treasury issued 110,565,832 RLUSD at around 20:43 UTC on November 2. CoinEdition reported the transaction using XRP Ledger records and public tracking data. RLUSD is designed to maintain a value of one US dollar.

The issuance followed a $284.4 million drop in RLUSD supply on XRPL on October 30. That represented a 28.7% decline after large token amounts returned to Ripple’s issuer account. Earlier, XRPL stablecoin supply crossed $1 billion during the third quarter, as reported by Blockonomi.

The new issuance does not confirm that customers bought $110.57 million in RLUSD. Stablecoin issuers also create tokens for treasury management, exchange balances and settlement needs. Ripple has not publicly tied this transaction to Binance’s withdrawal recovery.

Binance Restores RLUSD Services Following October Attack

Binance restarted selected cryptocurrency withdrawals on November 1. On November 3, it announced another phase covering nine blockchain networks. RLUSD withdrawals were listed for both Ethereum and the XRP Ledger, subject to security checks.

The second withdrawal phase followed an October 29 breach that affected about $6.34 billion in digital assets. Binance said attackers gained access to an internal wallet signing service and moved funds without authorization.

Five Binance wallets sent 233.46 million XRP to an attacker-controlled address during the breach. The exchange later reported replacing 98% of affected token assets by November 4, while buying the remaining less-liquid holdings. It pledged to cover customer losses.

Binance also recorded $3.64 billion in net outflows during the first nine and a half hours after services resumed. The company said the initial rush later eased.

Ripple Freezes RLUSD but Cannot Freeze Native XRP

Researchers reported that Ripple froze roughly $40.5 million in stolen RLUSD on Ethereum following the attack. RLUSD has issuer controls that can block transfers from specified addresses. Native XRP has no comparable issuer-controlled freezing feature.

The Binance hack investigation also traced the intrusion to malicious software and a fake recruitment process. Binance said its review remained open and external security firms would examine its findings. RLUSD transfers on XRPL require small network fees paid in XRP. However, creating $110.57 million in stablecoins does not mean users purchased the same amount of XRP.

The post Ripple Mints $110M RLUSD After Sudden Supply Drop appeared first on Blockonomi.