Ripple and Securitize have launched a 24/7 off-ramp that lets holders of BlackRock's BUIDL and VanEck's VBILL tokenized Treasury funds redeem shares for Ripple USD (RLUSD). This regulated off-ramp provides instant settlement and programmable liquidity for institutional investors. RLUSD is backed by cash and Treasurys and held by BNY Mellon under NYDFS oversight. Ripple and Securitize aim to bridge traditional finance with crypto.
Ripple and Securitize have announced a significant partnership that allows holders of BlackRock's BUIDL and VanEck's VBILL tokenized Treasury funds to redeem shares for Ripple USD (RLUSD) through a 24/7 off-ramp. This integration provides institutional investors with instant settlement and programmable liquidity, further bridging the gap between traditional finance and digital assets.
The off-ramp, facilitated by a smart contract, enables seamless redemption of tokenized shares for RLUSD, enhancing liquidity and settlement efficiency. RLUSD, backed one-to-one by cash and Treasuries, is held by BNY Mellon under the oversight of the New York Department of Financial Services (NYDFS). This regulatory alignment underscores the stability and reliability of RLUSD, positioning it as a viable competitor to USDC in the realm of real-world asset (RWA) tokenization.
The integration is a strategic move for both Ripple and Securitize. Ripple, which launched RLUSD in late 2024, aims to challenge USDC's dominance in enterprise-grade stablecoins. Securitize, managing over $4 billion in tokenized assets under SEC oversight, sees this partnership as a major step forward in automating liquidity for tokenized assets. The addition of RLUSD to Securitize's platform expands its ecosystem and bolsters its position as a critical hub for institutional tokenization.
The move is part of a broader trend of increasing competition among stablecoins for RWA settlement flows. While USDC has traditionally been the default option for regulated tokenization projects, Ripple's integration demonstrates that RLUSD can carve out a niche by securing partnerships with established asset managers and infrastructure providers like Securitize. This could accelerate institutional confidence in tokenized products and boost overall stablecoin demand.
References
Ripple and Securitize Launch 24/7 Off-Ramp for BlackRock Tokenized Fund[1] https://beincrypto.com/ripple-rlusd-tokenized-funds-global-competition/
BlackRock, VanEck Tokenized Funds Add Ripple Stablecoin as Liquidity Option[2] https://financefeeds.com/blackrock-vaneck-tokenized-funds-add-ripple-stablecoin-as-liquidity-option/
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