Ripple, a prominent name in the cryptocurrency market, has recently partnered with Securitize, a platform that enables the tokenization of real-world assets. This strategic alliance aims to accelerate the adoption of Ripple USD stablecoin and provide an additional off-ramp for tokenized funds such as those produced by BlackRock and VanEck.
The Ripple and Securitize Partnership
Ripple has announced its collaboration with Securitize, a leading player in enabling real-world assets to be tokenized. This is a major move aimed at increasing the adoption and usage of Ripple’s USD stablecoin (RLUSD). Through a smart contract, tokenized funds holders, specifically of BlackRock’s and VanEck’s financial products, can exchange their asset shares for the said stablecoin.
Initial Support for BlackRock and VanEck
The initial focus of the partnership is on two tokenized funds – BlackRock’s USD Institutional Digital Liquidity Fund and VanEck’s Treasury Fund. The support for the Ripple USD (RLUSD) off-ramp for BlackRock’s liquidity fund, knowns as BUIDL, has already gone live and the same support for VanEck’s VBILL is slated to begin in the forthcoming days. As per current data, the BUIDL fund is presently a $2 billion Real-World Assets (RWA) asset on-chain, and VBILL enjoys a market cap of $74 million.
Benefits for Users
This new development will usher in several benefits for tokenized fund holders. Notably, they will be able to instantly convert the tokenized treasury funds into RLUSD, thereby gaining access to several decentralized finance strategies. With this, users can unlock benefits such as on-chain transfers, capitalizing on yield farming, and more.
Strategic Role of RLUSD
Ripple, which also backs the popular cryptocurrency XRP, sees this partnership as a significant initiative toward bolting the adoption of RLUSD. Jack McDonald, the senior vice president of stablecoins at Ripple, stated that RLUSD’s availability as an exchange option for tokenized funds was a natural progression in their efforts to blend traditional finance with cryptocurrencies. He notably mentioned that the RLUSD stablecoin was specifically designed for institutional use, and stressed upon its regulatory clarity, stability, and real utility for users.
The RLUSD is a stablecoin pegged 1:1 with the U.S. dollar, and it operates under the authority of the New York Department of Financial Services Trust Charter. Being launched in the late 2024, it currently boasts a market cap of over $741 million, thereby emerging as one of the strongest contenders in the rapidly growing market that features big names such as Tether’s USDT, Circle’s USDC, and PayPal’s PYUSD.
Integration of XRP Ledger
Alongside the RLUSD integration, Securitize is also embarking on integrating the XRP Ledger into its operations. By doing this, Securitize aims to boost the utility and accessibility of both the XRP Ledger and RLUSD across the burgeoning market of real-world assets (RWA), thereby leading to an increased rate of cryptocurrency adoption.
In conclusion, the new partnership can potentially usher in a new era in the rapidly expanding world of digital assets. With the adoption of Ripple’s US stablecoin, the road to the blending of traditional financial systems with the growing world of cryptos might just have become a little smoother.
