Key Takeaways
How will Ripple help BlackRock?
Fund holders of BlackRock’s BUIDL can redeem the shares to RLUSD for fast and efficient on-chain liquidity.
How will it benefit XRP?
The update did not stir XRP as the altcoin under the whims of the broader market sentiment.
Ripple [XRP] has announced off-ramp support for BlackRock’s tokenized money market fund, BUIDL, allowing fund holders to swap 1:1 with its stablecoin RLUSD.
A similar feature will be enabled for VanEck’s tokenized product, VBILL, in the coming days. According to Ripple CEO Brad Garlinghouse, the move was a ‘real utility’ for users to have on-chain liquidity on the go.
He added that the swap feature will be available on Ethereum [ETH] but will be expanded into the XRPL ecosystem.
Market reactions
The off-ramping will be achieved through a partnership with Securitize, the real-world asset tokenization powering the VBILL and BUILD products.
Conventionally, the off-ramping for these two tokenized treasury funds involves off-chain through bank transfers or equivalent cash via Securitize.
This could take more time for settlement, hence the on-chain exit like RLUSD can be more efficient.
But RLUSD isn’t the first one to offer this feature. Circle made the first move in April 2024, <
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Author: Benjamin Njiri
