Ripple's USD-backed stablecoin RLUSD is seeing increased institutional adoption, with its most notable integration being as a settlement tool for BlackRock's tokenized U.S. Treasury fund, BUIDL. This development, which sparked significant excitement within the XRP community on social media, clarifies the nature of the relationship between Ripple and the world's largest asset manager.
The connection stems from a September 2025 partnership between Ripple and tokenization firm Securitize. Through this collaboration, RLUSD was integrated as a settlement mechanism for BlackRock's BUIDL fund. This allows investors to instantly swap their BUIDL shares for RLUSD, providing a 24/7 off-ramp from tokenized treasury assets into a regulated stablecoin, thereby enhancing liquidity and practicality for institutional on-chain finance.
It is crucial to note that while RLUSD is used for settlement within this specific tokenized fund structure, claims circulating on social media that BlackRock is using RLUSD as broad collateral for all its cross-border payments are unconfirmed and likely exaggerated. The primary function remains focused on the BUIDL fund settlement.
RLUSD, approved by the New York Department of Financial Services (NYDFS), is a 1:1 USD-backed stablecoin designed for serious financial use cases like fast payments and settlements. It runs on both the XRP Ledger and Ethereum and had surpassed a $1 billion market cap by late 2025. Ripple's broader financial strength is underscored by over $2.2 billion in tender offers from 2025 and a $72 billion XRP reserve.
The move aligns with a growing trend of major financial institutions exploring tokenized assets, seeking faster settlement, lower costs, and real-time liquidity. Ripple's expansion efforts, including strategic partnerships with institutions like AMINA Bank, position RLUSD as a potential key infrastructure tool for the future of institutional blockchain finance.
