XRP stablecoin RLUSD is advancing its role in digital finance by becoming an integral settlement mechanism in tokenized funds managed by BlackRock and VanEck.

RLUSD Enhances Access to On-Chain Liquidity

Holders of tokenized money-market funds from BlackRock (BUIDL) and VanEck (VBILL) can now seamlessly redeem their shares for RLUSD, Ripple’s institutional-grade stablecoin. This is made possible through a new smart contract offered by Securitize, which enables an on-demand swap between fund units and the stablecoin. The result is a 24/7 liquidity access point leveraging the RLUSD stablecoin, essentially functioning as an off-ramp for tokenized U.S. Treasury assets.

Ripple describes this functionality as a critical piece of infrastructure for bridging the traditional financial world with blockchain-based assets. The integration targets the integration of real-world assets (RWA) within the digital financial ecosystem, with RLUSD acting as a reliable and regulation-friendly intermediary.

Graph showing RLUSD’s role in facilitating redemptions from tokenized funds such as BlackRock’s BUIDL and VanEck’s VBILL.

A Step Forward in Financial Tokenization

Jack McDonald, Ripple’s Senior Vice President of Stablecoins, emphasized the strategic importance of this integration. He labeled it a “natural next step” in Ripple’s journey to connect conventional finance with decentralized finance (DeFi). McDonald noted that RLUSD combines enterprise reliability with full regulatory compliance, as it is issued under a charter from the New York Department of Financial Services (NYDFS).

Since its launch in the previous year, RLUSD has quickly gained traction, amassing over $700 million in circulating supply. The coin is fully backed by liquid reserves, helping it earn trust among institutional investors. Initially deployed for cross-border payments and DeFi liquidity pools, RLUSD is now expanding its use as a settlement token for tokenized U.S. Treasuries.

Deployment on the XRP Ledger and Beyond

This latest development also supports RLUSD’s deployment on the XRP Ledger (XRPL), Ripple’s native blockchain. By integrating stablecoin issuance with XRPL’s speed and low costs, the company aims to create a dual-function asset. RLUSD wouldn’t only cater to high-compliance enterprise use cases but would also serve as a liquid asset within public DeFi environments.

The partnership with Securitize brings added functionality to RLUSD, potentially broadening its adoption across multiple financial infrastructures. It underlines Ripple’s commitment to making stablecoins not just tools for crypto trading, but core components in digitalizing real-world financial instruments.

Bridging Traditional and Digital Finance

By embedding RLUSD into high-grade institutional products, Ripple is positioning the XRP ecosystem to play a pivotal role in the future of digital finance. The stablecoin’s dual compliance and usability focus provides a scalable blueprint for integrating blockchain into traditional fund structures.

As tokenized treasuries continue to rise in popularity, the ability to instantly and securely redeem into a digital equivalent like RLUSD ensures enhanced flexibility and on-chain utility for institutional investors. This evolution further blurs the lines between conventional investment vehicles and decentralized infrastructures.