How the Swap Works
Ripple and Securitize have integrated a new smart contract on Securitize’s platform, enabling holders of BlackRock’s BUIDL and VanEck’s VBILL tokenized funds to instantly exchange their shares for Ripple’s stablecoin, RLUSD. This creates a direct, automated redemption path that functions 24 hours a day, seven days a week, providing a significant upgrade from traditional settlement windows.
The process is designed for efficiency and compliance. Investors can trigger the contract at any time to swap their tokenized fund shares for RLUSD, with the entire transaction staying on-chain. This allows for real-time settlement and gives liquidity desks and traders immediate access to a stable, enterprise-grade digital dollar that can be seamlessly deployed into other on-chain yield strategies or DeFi applications. Securitize, as a key compliance layer, oversees this process from its platform, which manages over $4 billion in tokenized assets.
Jack McDonald, Ripple’s SVP of Stablecoins, described the integration as “a natural next step as we continue to bridge traditional finance and crypto”, highlighting RLUSD’s design for institutional use. Carlos Domingo, Co-Founder and CEO of Securitize, added that the partnership delivers “real-time settlement and programmable liquidity across a new class of compliant, on-chain investment products”.
Market Effects and Outlook
This integration marks a significant step for institutional adoption of digital assets. By embedding RLUSD into major tokenized funds like BUIDL, which has over $2 billion in assets under management, and VBILL, which manages about $74 million, Ripple’s stablecoin gains a crucial position within institutional workflows. It provides treasuries and funds with a compliant, on-chain dollar token for operations, enabling faster movements of cash and collateral without being constrained by banking hours.
However, RLUSD faces strong competitive pressure in the stablecoin arena. While it has seen rapid growth, surpassing $700 million in circulation since its launch in late 2024, its scale is still far behind established giants like USDT and USDC. Its continued growth will depend on sustained institutional buy-in.
The regulatory outlook remains a decisive factor. RLUSD is issued under a New York Department of Financial Services (NYDFS) Trust Company Charter and is backed 1:1 by high-quality liquid assets, with BNY Mellon serving as the primary custodian for its reserves. This regulatory rigor is a key part of its appeal to institutions. The future scale of the product will be shaped by the evolution of stablecoin rules and broader regulatory acceptance.
The key test for RLUSD will be its ability to function as a reliable and scalable bridge between traditional finance and on-chain markets. Its success will hinge on deepening liquidity, expanding its use cases, and navigating the evolving regulatory landscape.
