JPMorgan, Mastercard and Ripple test tokenized Treasury settlement on XRPL

JPMorgan, Mastercard, Ripple, and Ondo Finance have completed a cross-border, cross-bank redemption of a tokenized U.S. Treasury fund using the XRP Ledger and traditional banking rails.

The pilot involved Ondo Finance’s OUSG fund, a tokenized short-term U.S. government Treasury product. Ripple redeemed part of its OUSG holdings on the XRP Ledger, while Mastercard’s Multi-Token Network sent settlement instructions to Kinexys by J.P. Morgan.

JPMorgan then moved U.S. dollar proceeds to Ripple’s bank account in Singapore through its correspondent banking network. The asset leg on the XRP Ledger was processed in under five seconds, according to Ondo’s announcement.

Ondo Finance President Ian De Bode said, “This milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows.”

Tokenized funds move beyond test cases

The transaction shows how tokenized assets can connect with banking systems without replacing them. One part of the transaction happened on a public blockchain, while the fiat side moved through bank infrastructure.

The firms said the setup could support settlement outside normal banking hours. That matters because many redemptions still depend on wire transfers, manual steps, and limited cut-off times.

Markus Infanger, SVP of RippleX, said the pilot showed how institutions can run cross-border transactions as “a single, integrated flow.” Mastercard’s Raj Dhamodharan also said tokenized commerce is moving toward real-time use at scale.

The pilot also comes after crypto.news reported that Ripple has been building corporate treasury tools for fiat, RLUSD, XRP, and other digital assets. That move placed Ripple deeper into on-chain cash management and treasury workflows.

Wall Street expands tokenization work

The transaction comes as major financial firms increase work on real-world asset tokenization. Crypto.news recently reported that DTCC plans limited production trades of tokenized securities in July 2026, before targeting a full DTC tokenization service in October.

That DTCC working group includes more than 50 firms from traditional finance and crypto. The list includes BlackRock, Goldman Sachs, J.P. Morgan, Morgan Stanley, Circle, Ondo Finance, Ripple Prime, NYSE Group, Nasdaq, and Kraken’s parent company Payward.

Crypto.news also reported that tokenized U.S. Treasuries remain the largest real-world asset segment by market value. Tokenized public equities have grown faster, but Treasury products still anchor the sector because of yield demand and clearer market structure.

RWA.xyz data also shows that tokenized real-world assets remain a multi-billion-dollar market. At the time checked, its dashboard showed $26.71 billion in distributed asset value, excluding stablecoins.

Regulation remains the next test

The pilot gives banks and crypto firms another live example of how public blockchains can work with regulated payment systems. However, wider adoption still depends on legal clarity, risk controls, and rules for settlement finality.

The IMF said in an April note that tokenized finance needs clear policy frameworks, safe settlement assets, strong code governance, legal certainty, and international coordination. It warned that weak safeguards could raise risks through speed, concentration, and fragmented systems.

Kevin O’Leary also said at Consensus Miami 2026 that major capital may stay cautious until U.S. crypto market structure rules are passed and aligned with SEC standards. “When that occurs, it’s going to change everything,” he said.