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Gemini has carried out a large redemption of Ripple’s $RLUSD stablecoin, burning $128 million worth of $RLUSD on the $XRP Ledger.
The update came from Vet, an XRPL validator, who explained that Gemini redeemed the funds by burning $RLUSD tokens to take back the liquidity it originally used to mint them with Ripple.
Key Points
- Gemini burned $128 million $RLUSD on XRPL in two transactions ($79M and $49M) on March 31.
- The burn represents a standard redemption process where $RLUSD is destroyed to retrieve fiat liquidity from Ripple.
- Ripple minted 10 million $RLUSD on Ethereum shortly after the XRPL-based burns.
- $RLUSD burns have reached $233.8 million in the past week, far exceeding $44 million minted.
- The $RLUSD supply on XRPL has dropped to $189 million, while Ethereum now holds over $1 billion worth of $RLUSD.
On-Chain Data Shows How the $RLUSD Funds Moved
In an X post, Vet clarified that this process is a normal part of how stablecoins work. Notably, when a company burns tokens, it is simply exchanging them for the same value in fiat currency from the issuer. In this case, Gemini appears to be adjusting its liquidity instead of reacting to anything unusual.
Just now Gemini redeemed (via burning) 128,000,000 $RLUSD on the $XRP Ledger with Ripple.
This means they requested the liquidity back that they used to mint $RLUSD with Ripple, by burning $RLUSD. pic.twitter.com/NEaqSHAaH0
— Vet (@Vet_X0) March 31, 2026
On-chain shows how Gemini handled the $128 million redemption on March 31. First, a Gemini-linked address sent $79 million in $RLUSD at 2:15 PM UTC to the address “rGp…qxA.”
Just eight minutes later, the address forwarded the funds to another wallet, “r3N…a64,” which then burned the tokens at 2:23 PM UTC, redeeming $79 million in fiat.
Later that day, Gemini repeated the same process with $49 million in $RLUSD at 5:32 PM UTC. The funds again went to “rGp…qxA,” which quickly passed them to “r3N…a64.” This second batch was burned at 6:36 PM UTC, returning $49 million in fiat.
Why Large $RLUSD Burns Happen
Large burns like this are common in stablecoin systems such as $RLUSD. Companies use them to manage liquidity after settlements, meet user withdrawal demands, or adjust their positions after trading activity. They also help handle payment flows, especially from card transactions or exchange usage.
For context, in November 2025, Ripple announced a partnership with Gemini at the 2025 Ripple Swell conference in New York.
The company teamed up with Mastercard and WebBank, which issues the Gemini Credit Card, to test $RLUSD for settling traditional credit card payments on the XRPL. The goal was to connect blockchain systems with everyday financial services.
Gemini Insolvency Rumors
After the burn, some members of the $XRP community questioned whether the move had links to rumors about Gemini’s financial health. These concerns were partly driven by comments from EasyA co-founder, Dom Kwok, who has persistently discussed the company’s recent struggles.
The concerns come from several issues, including a reported $583 million net loss in 2025, a class-action lawsuit over its 2025 IPO, and ongoing restructuring under its “Gemini 2.0” plan.
Despite the challenges, Gemini is still operating as usual. Notably, its main exchange is running, it has not entered bankruptcy or receivership, and users can still access their funds.
The SEC also dropped its case related to Gemini Earn after investors were fully repaid through the Genesis bankruptcy process. So while concerns exist, there is no confirmed insolvency.
$RLUSD Supply Drops on XRPL
Meanwhile, soon after the burn activity on XRPL, Ripple minted 10 million $RLUSD on Ethereum at 9:14 PM UTC on March 31. Over the past week, total $RLUSD minting reached $44 million, including $30 million on Ethereum and $14 million on XRPL.
However, during the same period, $RLUSD burns totaled $233.8 million, with $130 million burned on XRPL and $103.8 million on Ethereum. Before this latest activity, XRPL had only recorded a small burn of $1.9 million on March 26.
Due to the difference between burning and minting, the supply on XRPL has dropped. The network now holds $189 million worth of $RLUSD, while Ethereum holds over $1 billion, based on Etherscan data. Also, $RLUSD has moved from eighth to ninth place among the largest stablecoins by market value at the time of reporting.