Ripple has partnered with Securitize to integrate its stablecoin, Ripple USD (RLUSD), into smart contract functionalities for tokenized funds: BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and VanEck’s Bitcoin Trust (VBILL).
Announced on September 24, 2025, this collaboration enables on-chain payments and yield-generating transactions within these funds, marking a pivotal step toward mainstream adoption of blockchain-based finance.
At the heart of this update is RLUSD, Ripple’s USD-pegged stablecoin launched earlier in 2025 on the XRP Ledger (XRPL) and Ethereum networks.
Designed for enterprise-grade stability and compliance, RLUSD is fully backed by U.S. dollar deposits, short-term Treasuries, and cash equivalents, with reserves audited monthly by a major accounting firm.
The new integration, powered by Securitize’s tokenization platform, allows RLUSD to interact directly with smart contracts governing BUIDL and VBILL.
This means investors can now use RLUSD for automated subscriptions, redemptions, and dividend distributions—processes that were previously limited to traditional fiat rails or less efficient on-ramps.
BlackRock’s BUIDL, the world’s largest tokenized money market fund with over $500 million in assets under management as of mid-2025, has been a trailblazer in RWA tokenization since its debut on Ethereum in March 2024.
By enabling RLUSD compatibility, the fund can now facilitate instant, low-cost transfers across blockchains, reducing settlement times from days to seconds.
Robert Mitchnick, BlackRock’s Head of Digital Assets:
“Integrating RLUSD with BUIDL not only enhances our smart contract ecosystem but also bridges the gap between stablecoin utility and high-yield tokenized treasuries, driving efficiency in a multi-trillion-dollar market.”
Similarly, VanEck’s VBILL, a tokenized version of its flagship Bitcoin ETF, benefits from enhanced programmability.
VBILL holders can now stake or lend their tokens using RLUSD as collateral within smart contracts, unlocking yield opportunities that blend crypto exposure with stablecoin safety.
VanEck’s CEO, Jan van Eck, emphasized the partnership’s role in democratizing access:
“Tokenized funds like VBILL were built for the future of finance, but real innovation comes from composability. With RLUSD, we’re empowering users to program their investments like never before—securely and at scale.”
Securitize, a leader in digital asset securities with over $1 billion in tokenized assets, serves as the technical backbone here.
Its platform ensures regulatory compliance under SEC guidelines, including KYC/AML checks and transfer agent services.
The integration leverages Securitize’s API for seamless RLUSD minting and burning, allowing funds to maintain 1:1 pegs while executing complex DeFi primitives like automated market makers (AMMs) or flash loans.
Brad Bailey, Securitize’s President, noted,
“By combining Ripple’s stablecoin infrastructure with our tokenization expertise, we’re creating a compliant on-ramp for institutions wary of pure DeFi risks. This isn’t just tech—it’s the infrastructure for the next wave of RWAs.”
The implications extend far beyond these two funds.
This move positions RLUSD as a settlement layer in the burgeoning RWA sector, projected to reach $10 trillion by 2030 according to Boston Consulting Group.
For Ripple, it bolsters RLUSD’s ecosystem amid growing competition from Tether (USDT) and Circle’s USDC, emphasizing XRPL’s speed (1,500 TPS) and low fees (fractions of a cent).
It also underscores Ripple’s pivot from cross-border payments to broader Web3 utilities, following its $125 million acquisition of Standard Custody in early 2025.
Critics might point to centralization concerns—RLUSD’s issuer controls minting—but proponents argue this is a necessary trade-off for institutional trust.
As tokenized funds proliferate, with players like Franklin Templeton and WisdomTree following suit, we may expect more stablecoin integrations to standardize RWA workflows.
In summary, Ripple and Securitize’s enablement of RLUSD smart contract functionality for BUIDL and VBILL could be a catalyst for hybrid finance.