Exploring Ripple’s Institutional Pathway in Stablecoin Strategy
Ripple has strategically expanded its stablecoin operations by integrating with Securitize. This collaboration enables holders of BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and VanEck’s VBILL tokenized US Treasuries to redeem their fund shares for Ripple USD (RLUSD) at any time. Initially, this service is available on Ethereum, with future plans to extend support to the XRP Ledger (XRPL).
BlackRock and VanEck Leverage Ripple’s RLUSD
On September 23, a joint announcement by Ripple and Securitize detailed a new smart-contract mechanism that allows holders of BlackRock’s BUIDL and VanEck’s VBILL to convert their shares into Ripple USD (RLUSD). This initiative is presented as an additional stablecoin exit channel for BUIDL and VBILL tokenized short-term treasury funds, offering round-the-clock availability and programmable liquidity for compliant on-chain investments. Furthermore, Securitize is set to integrate with the XRP Ledger to broaden access and enhance the XRPL ecosystem’s utility.
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Jack McDonald, Ripple’s SVP of Stablecoins, emphasized the strategic importance of this integration as a bridge between tokenized funds and transactional currency. RLUSD is tailored for institutional use, providing regulatory clarity, stability, and tangible utility. McDonald highlighted the importance of partnerships with reliable platforms like Securitize in unlocking new liquidity avenues and enterprise-grade applications.
Ripple’s President, Monica Long, linked the Securitize integration to a broader RLUSD tokenization initiative announced earlier with DBS and Franklin Templeton. This plan positions RLUSD as a stable, liquid, and compliant exchange mechanism for tokenized assets in lending and trading contexts.
Ripple’s CEO, Brad Garlinghouse, underscored the commitment to 24/7 redemption and the forthcoming XRPL integration, promising enterprise-grade, instant on-chain liquidity, thereby showcasing real utility.
Regulatory Assurance and Market Impact
The companies emphasize a regulatory-first design, noting that RLUSD is issued under a New York Department of Financial Services (NYDFS) trust charter. It is backed 1:1 by high-quality liquid assets, ensuring strict reserve management, asset segregation, third-party attestations, and clear redemption rights. Since its launch in late 2024, RLUSD has successfully integrated into DeFi and cross-border payment flows, surpassing $700 million in market capitalization.
For tokenized funds, this off-ramp is crucial as it seamlessly connects yield-bearing on-chain treasuries with settlement-grade stablecoin liquidity. Through Securitize, BlackRock’s BUIDL and VanEck’s VBILL, both tokenized short-term US Treasury strategies, are issued on public blockchains. The new workflow allows qualified holders to convert fund shares into RLUSD without traditional banking hours’ limitations, potentially enhancing collateral mobility for trading, lending, repo, and treasury operations.
Ripple’s Continued Focus on Tokenization
This development follows Ripple’s collaboration with DBS and Franklin Templeton, where Franklin’s sgBENJI token is listed on the DBS Digital Exchange alongside RLUSD. This arrangement facilitates swapping between the tokenized fund and the stablecoin, exploring the use of tokenized fund units as repo collateral, exemplifying how banks envision tokenization rails addressing institutional liquidity needs.
Currently, the initial redemption pathway is operational on Ethereum via Securitize, with both companies indicating that XRPL integration is forthcoming. This aligns with Ripple’s strategy to make RLUSD inherently valuable across multiple platforms. XRPL support would extend the same institutional redemption mechanics to a different settlement environment, which Ripple and parts of the treasury-tokenization market already engage with through custody, payments, and previous Franklin Templeton XRPL issuance plans.
Significantly, BlackRock will be featured at Ripple Swell 2025 in New York on November 4–5 at Convene Hudson Yards. Maxwell Stein, BlackRock’s Director of Digital Assets, will participate in a session titled “The Impact of Tokenized Financial Assets on Capital Markets,” alongside Rory Callagy from Moody’s.
At the time of this writing, XRP is trading at $2.88.
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