Executive Summary

Ripple, in collaboration with tokenization platform Securitize, has integrated its RLUSD stablecoin as an off-ramp for BlackRock's BUIDL (USD Institutional Digital Liquidity Fund) and VanEck's VBILL (Treasury Fund, Ltd.) tokenized funds. This strategic partnership enables holders of these institutional tokenized assets to instantly exchange their shares for RLUSD via a smart contract, enhancing on-chain liquidity and transferability within the rapidly expanding real-world asset (RWA) tokenization market.

The Event in Detail

On September 23, 2025, Ripple and Securitize announced the deployment of a smart contract facilitating the exchange of BlackRock's BUIDL and VanEck's VBILL tokenized fund shares for Ripple USD (RLUSD). This mechanism allows investors to convert their tokenized holdings into the RLUSD stablecoin 24 hours a day, seven days a week. The integration provides an additional stablecoin off-ramp for these funds, which are BlackRock and VanEck's inaugural tokenized offerings issued on public blockchains.

BlackRock's BUIDL, launched in March 2024, has rapidly grown to exceed $2 billion in assets under management (AUM), with approximately $1.7 billion issued on Ethereum. VanEck's VBILL, introduced in May 2025, manages about $74 million in assets across Avalanche, BNB Chain, Ethereum, and Solana. Both funds aim to maintain a net asset value of $1, similar to stablecoins, allowing for their deployment across decentralized on-chain economies.

RLUSD, launched in early 2025 under a New York Department of Financial Services trust charter, is an enterprise-grade stablecoin designed for regulatory compliance and utility. It boasts a market capitalization of nearly $740 million, making it the eighth-largest stablecoin. RLUSD is issued by Standard Custody and Trust Company, a Ripple subsidiary, and adheres to generally accepted accounting principles (GAAP), Basel III, and the Dodd-Frank Act.

Market Implications

This integration signifies a material advancement in the financial mechanics of tokenized assets. By providing a direct, instant conversion pathway to a regulated stablecoin, the smart contract addresses critical issues of liquidity and settlement efficiency for institutional investors. This programmable liquidity allows for continuous exposure to RLUSD while preserving access to on-chain yield and broader DeFi strategies, thereby increasing the utility, flexibility, and interoperability of tokenized assets.

The collaboration also underscores Securitize's role as a leading RWA tokenization platform, with over $4 billion in AUM as of May 2025. Its ongoing integration with the XRP Ledger (XRPL) further expands the ecosystem for tokenized assets and stablecoins.

Expert Commentary

Jack McDonald, Senior Vice President of Stablecoins at Ripple, commented that making RLUSD available as an exchange option for tokenized funds is a natural progression in bridging traditional finance and crypto. He emphasized that RLUSD is purpose-built for institutional use, offering “regulatory clarity, stability, and real utility.”

Carlos Domingo, Co-Founder and CEO of Securitize, stated that the partnership with Ripple to integrate RLUSD into their tokenization infrastructure represents a significant step towards automating liquidity for tokenized assets. He noted that this collaboration delivers “real-time settlement and programmable liquidity across a new class of compliant, on-chain investment products.”

Broader Context

The integration marks a strategic move by Ripple to position RLUSD as a primary competitor to Circle's USDC for institutional RWA settlement. With total RWAs on-chain reaching $30.3 billion as of 2025, the competition among regulated stablecoins for these settlement flows is intensifying. This development aligns with a broader trend of traditional financial institutions increasingly exploring and adopting Web3 infrastructure. Previous collaborations, such as the partnership between DBS, Franklin Templeton, and Ripple for tokenized money market funds using RLUSD, further illustrate this convergence. The ability for investors to swap between stablecoins and yield-generating tokens within minutes, a process that traditionally takes days, expands liquidity options and accelerates the transition towards hybrid financial models where Web2 infrastructure and Web3 innovation coexist to serve institutional needs.