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Ripple has introduced another institutional channel to its stablecoin approach: via a collaboration with Securitize, holders of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and VanEck’s VBILL tokenized US Treasuries can now exchange fund shares for Ripple USD (RLUSD) anytime—initially on Ethereum, with support for the XRP Ledger (XRPL) planned in the future.
BlackRock And VanEck Shift To Ripple’s RLUSD
In a press announcement dated September 23, Ripple and Securitize stated a new smart-contract workflow “would permit holders of BlackRock’s BUIDL and VanEck’s VBILL to trade their shares … for Ripple USD (RLUSD),” describing the framework as “an extra stablecoin off-ramp for BUIDL and VBILL tokenized short-term treasury funds.” The companies highlighted constant availability—“24/7”—and characterized the upgrade as programmable liquidity for compliant, on-chain investment products. Securitize also verified it is integrating with the XRP Ledger “to broaden access and provide fresh utility to the XRPL ecosystem.”
Jack McDonald, Ripple’s SVP of Stablecoins, framed the transition as a connection between tokenized funds and transactional currencies: “RLUSD is crafted for institutional purposes, providing regulatory clarity, stability, and legitimate utility. As adoption increases, collaborations with trustworthy platforms like Securitize are vital to unlocking new liquidity and enterprise-grade applications.” On X, McDonald distilled the update for market participants: “RLUSD is now a crucial stablecoin off-ramp for BlackRock’s BUIDL and VanEck’s VBILL tokenized fund holders. The integration begins with ETH, though Securitize aims to connect with the XRP Ledger.”
Ripple President Monica Long associated the Securitize integration with a larger RLUSD tokenization initiative announced the previous week with DBS and Franklin Templeton, where RLUSD acts as a “liquid, stable, and compliant exchange mechanism for tokenized assets in lending and trading applications.” “This week, Securitize incorporated RLUSD as a new off-ramp for BlackRock and VanEck’s tokenized funds,” she pointed out.
Ripple CEO Brad Garlinghouse emphasized the 24/7 redemption commitment and the XRPL roadmap: “Very enthusiastic to announce that BlackRock’s BUIDL and @VanEck_US’s VBILL tokenized fund holders can exchange shares for RLUSD/ETH 24/7 365 through Securitize, with RLUSD/XRPL on the horizon. Enterprise-grade instant on-chain liquidity at your disposal. That’s true utility.”
The firms positioned the design as explicitly focused on regulatory considerations. Ripple stated RLUSD is issued under a New York Department of Financial Services (NYDFS) trust charter, featuring “1:1 USD backing by premium liquid assets, stringent reserve management and asset segregation, third-party confirmations, and clear redemption rights.” Ripple noted that since its introduction in late 2024, RLUSD has integrated into DeFi and cross-border payment systems while exceeding $700 million in market capitalization.
For tokenized funds, the off-ramp is crucial as it connects yield-bearing on-chain treasuries with settlement-grade stablecoin liquidity. BlackRock’s BUIDL and VanEck’s VBILL are tokenized short-term US Treasury strategies issued through Securitize on public blockchains; the newly established workflow enables qualified holders to convert fund shares into RLUSD without traditional banking hours disruption, potentially enhancing collateral mobility for trading, lending, repo, and treasury operations.
Ripple Places New Emphasis On Tokenization
This development also follows Ripple’s partnership with DBS and Franklin Templeton, which is listing Franklin’s sgBENJI token on the DBS Digital Exchange alongside RLUSD to facilitate swapping between the tokenized fund and the stablecoin, and to investigate the use of tokenized fund units as repo collateral—an illustration of how banks foresee tokenization channels addressing institutional liquidity requirements.
While the initial redemption mechanism operates on Ethereum through Securitize, both firms indicated that XRPL integration is forthcoming, aligning with Ripple’s drive to make RLUSD inherently functional across various platforms. If successful, XRPL support would extend the same institutional redemption processes to an alternative settlement environment—one already interacted with by Ripple and sectors of the treasury-tokenization market via custody, payments, and previous Franklin Templeton XRPL issuance initiatives.
Significantly, BlackRock will be represented at Ripple Swell 2025 in New York on November 4–5 at Convene Hudson Yards. Maxwell Stein, BlackRock’s Director of Digital Assets, is set to speak in a session titled “The Impact of Tokenized Financial Assets on Capital Markets,” alongside Rory Callagy of Moody’s.
At the time of writing, XRP traded at $2.88.
Featured image crafted with DALL.E, chart from TradingView.com
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