Ripple has established a direct redemption pathway for holders of BlackRock's BUIDL and VanEck's VBILL tokenized Treasury funds, enabling 24/7 conversion to Ripple USD (RLUSD) stablecoin through a partnership with Securitize. The integration launches initially on Ethereum with XRP Ledger support planned for future deployment.

What to Know:

• BlackRock's BUIDL and VanEck's VBILL tokenized fund holders can now redeem shares for RLUSD around the clock through Securitize's smart contract system
• The integration starts on Ethereum with XRP Ledger support in development, expanding institutional liquidity options for tokenized Treasury products
• RLUSD has reached over $700 million in market capitalization since its late 2024 launch and operates under New York Department of Financial Services regulatory oversight

Institutional Treasury Funds Gain Stablecoin Liquidity

The September 23 announcement establishes what Ripple and Securitize describe as "programmable liquidity" for compliant institutional investment products. BlackRock's USD Institutional Digital Liquidity Fund and VanEck's VBILL represent tokenized short-term Treasury strategies issued through Securitize on public blockchains.

The new smart contract mechanism allows qualified fund holders to bypass traditional banking hours when converting positions. Jack McDonald, Ripple's Senior Vice President of Stablecoins, characterized the development as bridging tokenized funds with transactional currency applications. "RLUSD is for institutional use, offering regulatory clarity, stability, and real utility," McDonald stated.

Securitize confirmed plans to integrate with XRP Ledger to expand ecosystem access. The platform currently facilitates the redemption process on Ethereum before extending to Ripple's native blockchain infrastructure.

Regulatory Framework Supports Enterprise Adoption

Ripple emphasizes RLUSD's regulatory foundation through its New York Department of Financial Services trust charter. The stablecoin maintains one-to-one dollar backing through high-quality liquid assets with segregated reserves and third-party attestations.

Since launching in late 2024, RLUSD has integrated into decentralized finance protocols and cross-border payment systems while surpassing $700 million in market capitalization. The tokenized fund integration represents another institutional use case for the regulatory-compliant digital asset.

Ripple President Monica Long connected the Securitize partnership to broader tokenization initiatives announced with DBS and Franklin Templeton.

These arrangements position RLUSD as an exchange mechanism for tokenized assets in lending and trading applications. The bank collaborations explore using tokenized fund units as repurchase agreement collateral.

For institutional investors, the offramp addresses liquidity constraints in tokenized Treasury products. Traditional fund redemptions operate within banking hours and settlement cycles. The RLUSD pathway enables continuous conversion to settlement-grade stablecoin liquidity for trading, lending, and treasury operations.

CEO Brad Garlinghouse highlighted the 24/7 availability and future XRP Ledger integration as key differentiators. "Enterprise-grade instant onchain liquidity at your fingertips. That's real utility," Garlinghouse wrote on social media platform X.

Tokenization Infrastructure Connects Traditional Finance

The Securitize integration follows Ripple's partnership with DBS and Franklin Templeton, which lists Franklin's sgBENJI token on DBS Digital Exchange alongside RLUSD. This arrangement enables direct swapping between tokenized funds and stablecoins.

Banking institutions view these tokenization rails as meeting institutional liquidity requirements. The infrastructure connects yield-bearing Treasury products with programmable settlement mechanisms. XRP Ledger integration would extend identical redemption mechanics to Ripple's blockchain environment.

BlackRock's digital assets director Maxwell Stein will participate in Ripple Swell 2025 in New York on November 4-5. The conference session titled "The Impact of Tokenized Financial Assets on Capital Markets" includes Moody's representative Rory Callagy.

Closing Thoughts

The BlackRock and VanEck integration demonstrates institutional appetite for programmable Treasury fund liquidity through regulated stablecoin infrastructure. XRP traded at $2.88 at publication time.