A significant development in the evolving landscape of institutional finance and blockchain technology is on the horizon as Securitize, a prominent tokenization platform, plans to integrate with the XRP Ledger (XRPL). This integration has the potential to directly link BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) with the XRPL blockchain network, as outlined in a statement made on September 23.
This move underscores a strengthening relationship between traditional financial systems and innovative blockchain infrastructure, particularly enhancing XRPL’s position within the real-world asset (RWA) sector. Recently, the XRP Ledger has successfully attracted several institutional participants, including Guggenheim, VERT, and Dubai Land Registry. These additions have propelled XRPL into the top ten blockchains recognized for RWA activity, reflecting its increasing significance in the capital markets.
Ripple has bolstered this momentum by unveiling a strategic roadmap that promotes the XRPL, along with its native assets, XRP and RLUSD, as foundational infrastructure for stablecoin transactions, collateralized lending, and various institutional applications. Amid this backdrop, the anticipated onboarding of the $2 billion BUIDL fund onto XRPL would represent a landmark achievement, given its designation as the largest tokenized money market fund in the industry.
As part of the budding collaboration, Ripple and Securitize are set to implement a smart contract integration designed to embed RLUSD into the tokenization platform. This advancement will facilitate investors in exchanging shares in tokenized funds like BlackRock’s BUIDL and VanEck’s VBILL for RLUSD around the clock. This integration aims to enhance liquidity, providing investors with a streamlined mechanism to navigate between tokenized money market funds and on-chain stable assets. While RLUSD can already be utilized for BUIDL, support for VBILL is anticipated to follow shortly.
Monica Long, President of Ripple, commented on the partnership, highlighting the accelerating adoption of RLUSD within institutional circles. She remarked, “Last week we announced DBS and Franklin Templeton using $RLUSD as a liquid, stable, and compliant exchange mechanism for tokenized assets in lending and trading use cases. This week, Securitize added RLUSD as a new offramp for BlackRock and VanEck’s tokenized funds.”
Current data from CryptoSlate indicates that RLUSD is rapidly gaining traction as one of the fastest-growing stablecoins, with a market capitalization now reaching $741.4 million. Its integration into leading tokenized funds not only solidifies its role but positions it as a pivotal player at the convergence of traditional finance and blockchain technology.
