Ripple and Securitize Launch Real-USD Off-Ramp for BlackRock and VanEck ETFs

September 24, 2025

Ripple and Securitize Launch Direct Redemption for Tokenized Assets with New Smart Contract

New York, NY – Ripple, a leading provider of enterprise blockchain and crypto solutions, and Securitize, a prominent platform for tokenizing real-world assets (RWAs), have announced a groundbreaking collaboration.This partnership introduces a new smart contract enabling the direct redemption of Ripple USD (RLUSD) for tokenized securities, streamlining the investment process and bridging customary finance with the digital asset space.

Expanding Access to Liquidity for Tokenized Investments

The newly developed smart contract permits holders of tokenized securities to seamlessly convert their shares into RLUSD, Ripple’s USD-backed stablecoin. RLUSD maintains a 1:1 peg to the US dollar, backed by US dollar reserves, US Treasury bonds, and Ripple’s payment capabilities, designed to enhance efficiency and reduce costs for financial institutions.

The Standard Custody & Trust Company, a Ripple subsidiary regulated by the New York Department of Financial Services (NYDFS), facilitates RLUSD issuance on both the XRP Ledger (XRPL) and the Ethereum (ETH) network. This dual-chain availability broadens accessibility for investors utilizing either blockchain ecosystem.

Initial Rollout and Future Expansion

Currently, the RLUSD off-ramp functionality is live for investors in blackrock’s Buidl and VanEck’s Vbill platforms. Ripple intends to extend this infrastructure to support additional investment vehicles in the near future, encompassing partners of Securitize like Apollo, Hamilton Lane, and KKR.

Securitize has already tokenized feeder funds for Apollo’s Diversified Credit Fund and collaborated with Hamilton Lane to tokenize several funds,including flagship direct tactic funds and secondary funds. Furthermore, the company completed the first US tokenization of a commitment to a KKR fund.

This collaboration signifies a significant step towards integrating traditional financial markets with blockchain technology. It aims to optimize financial applications and broaden investment opportunities for both individual and institutional investors.

“Immediate on-chain liquidity at the company level,” shared Brad Garlinghouse, CEO of Ripple, emphasizing the practical benefits of this new functionality. “This is real benefit.”

jack McDonald, Senior Vice president of StableCoins at Ripple, and Carlos Domingo, co-founder and CEO of Securitize, highlighted the advancement as a natural evolution of RLUSD within the RWA tokenization landscape.

“Making RLUSD available as a trade option for tokenized funds is a logical progression as we continue to build a bridge between traditional finance and the crypto world,” explained McDonald.

Domingo added, “Our partnership with Ripple to integrate RLUSD into our tokenization infrastructure represents a pivotal step towards automating liquidity for tokenized assets.”

Feature	Details
Partners	Ripple and Securitize
Core Innovation	direct RLUSD redemption for tokenized securities
Initial Platforms	BlackRock Buidl and VanEck Vbill
RLUSD Backing	1:1 with US Dollar reserves and US Treasury bonds
Blockchain Support	XRP Ledger (XRPL) and Ethereum (ETH)

Understanding Tokenization and RWAs

Tokenization involves representing real-world assets – such as stocks, bonds, real estate, or commodities – as digital tokens on a blockchain. This process can enhance liquidity, transparency, and accessibility.Real World Assets (RWAs) are gaining traction in the digital asset space, providing a link between traditional finance and the benefits of blockchain technology. As of late 2024, the RWA market was estimated at over $300 billion and is expected to grow exponentially in the coming years.

Pro Tip: Always research the underlying assets and regulatory compliance of any tokenized security before investing.

Frequently Asked Questions about RLUSD and Tokenized Securities

• What is RLUSD? RLUSD is a stablecoin issued by Ripple, fully backed by US dollar reserves and treasury bonds, designed to facilitate faster and more efficient transactions.
• What are tokenized securities? Tokenized securities are digital representations of traditional financial assets, like stocks or bonds, on a blockchain.
• How does this partnership benefit investors? Investors gain more liquidity and simplified access to converting tokenized assets back into a stablecoin like RLUSD.
• is RLUSD regulated? Yes, the Standard Custody & Trust Company, the issuer of RLUSD, is regulated by the New York Department of Financial Services (NYDFS).
• What is the future of RWA tokenization? The RWA market is poised for significant growth, with increasing institutional interest and adoption.
• Are there risks associated with investing in tokenized securities? Like all investments, tokenized securities carry risks, including market volatility and regulatory uncertainty.
• Will this service be available for all tokenized funds? Ripple plans to expand the off-ramp infrastructure to support a wider range of investment vehicles over time.

What are your thoughts on the integration of traditional finance and blockchain technology? Do you see tokenization as the future of investing?

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How could the Real-USD off-ramp impact the liquidity of Ethereum ETFs?

Bridging Traditional Finance and Digital Assets

ripple and Securitize have announced a meaningful partnership to launch a real-USD off-ramp,facilitating withdrawals from BlackRock’s and VanEck’s Ethereum ETFs (Exchange Traded Funds) in USD stablecoin form. This progress marks a crucial step in integrating traditional finance with the burgeoning digital asset space, offering investors greater versatility and access to the benefits of blockchain technology. The integration leverages Ripple’s robust payment infrastructure and Securitize’s expertise in tokenizing real-world assets (RWAs).

Understanding the Real-USD Off-Ramp

An “off-ramp” in the context of cryptocurrency refers to a mechanism that allows users to convert digital assets back into fiat currency (like USD).Traditionally, this process has involved centralized exchanges and often comes with fees and potential delays. The Real-USD off-ramp streamlines this process, enabling ETF investors to seamlessly convert thier ETF proceeds into Real-USD, a stablecoin pegged 1:1 to the US dollar.

Here’s how it works:

* ETF redemption: Investors redeem shares of the BlackRock or vaneck Ethereum ETFs.

* Real-USD Conversion: Instead of receiving USD directly, proceeds are converted into Real-USD.

* Seamless Withdrawal: Investors can then withdraw Real-USD to their preferred wallets or utilize it within the broader DeFi (decentralized Finance) ecosystem.

Key Benefits for ETF Investors

This new off-ramp offers several advantages for investors in thes Ethereum ETFs:

* faster Settlement: Compared to traditional banking rails, stablecoin transactions typically settle much faster, often within seconds or minutes.

* Reduced Fees: Utilizing stablecoins and blockchain technology can possibly lower transaction fees associated with withdrawals.

* 24/7 Access: Unlike traditional banking hours, Real-USD can be accessed and transacted 24/7, providing greater flexibility.

* DeFi Integration: Real-USD opens doors to participation in various DeFi applications, such as lending, borrowing, and yield farming.

* Increased Liquidity: The availability of Real-USD enhances liquidity within the digital asset ecosystem.

Ripple’s Role and Technology

Ripple’s involvement is pivotal due to its established network and payment solutions. Specifically, Ripple leverages its On-Demand Liquidity (ODL) technology, formerly known as xRapid, to facilitate the efficient conversion between fiat and digital assets.

* ODL for Stablecoin Liquidity: ODL provides the necessary liquidity to ensure seamless conversions between USD and Real-USD,minimizing reliance on traditional correspondent banking networks.

* RippleNet Integration: the integration with RippleNet, Ripple’s global payment network, expands the reach and accessibility of Real-USD.

* Scalability and Efficiency: Ripple’s technology is designed to handle high transaction volumes with speed and efficiency, crucial for supporting large-scale ETF redemptions.

Securitize’s Contribution: Tokenizing Real-World Assets

Securitize specializes in the tokenization of real-world assets, bringing traditional financial instruments onto the blockchain. Real-USD is a prime example of this, representing a digitally native form of USD backed by fully reserved US dollars held in regulated trust accounts.

* Regulatory Compliance: Securitize ensures Real-USD adheres to stringent regulatory standards, providing investors with confidence and security.

* Transparency and Auditability: Blockchain technology provides a clear and auditable record of all Real-USD transactions.

* Institutional-Grade Infrastructure: Securitize offers an institutional-grade infrastructure for managing and administering tokenized assets.

Impact on the ETF Landscape & Digital Asset Adoption

This partnership is expected to have a ripple effect (no pun intended) across the ETF and digital asset industries.

* Increased ETF Adoption: The convenience and efficiency of the Real-USD off-ramp could attract more investors to Ethereum ETFs.

* Mainstream Stablecoin Adoption: The integration with major ETFs like those from BlackRock and VanEck will likely drive broader adoption of Real-USD and other stablecoins.

* Blurring Lines Between TradFi and DeFi: This development further blurs the lines between traditional finance (TradFi) and decentralized finance (DeFi), fostering greater interoperability.

* Growth of RWA Tokenization: the success of Real-USD could spur further tokenization of real-world assets, unlocking new investment opportunities.

Real-World Examples & Case Studies

While this is a recent development (September 2025), the underlying technologies have been proven. Ripple’s ODL has been successfully used for cross-border payments in various corridors, demonstrating its ability to provide fast and cost-effective liquidity. Securitize has previously tokenized assets like private equity funds and real estate, showcasing its expertise in bringing RWAs onto the blockchain. The combination of these proven technologies positions