Ondo, JPMorgan, Mastercard and Ripple Settle Tokenized Treasuries on XRP Ledger, What Next?

TLDR

• Ondo completed a cross-border redemption of its OUSG tokenized Treasury fund.
• The transaction settled on the XRP Ledger in under five seconds.
• JPMorgan’s Kinexys delivered U.S. dollars to Ripple’s Singapore bank account.
• Mastercard’s Multi-Token Network routed settlement instructions.
• JPMorgan’s Kinexys has processed over $3T in cumulative transactions.

Ondo Finance completed a near-real-time cross-border redemption of tokenized U.S. Treasuries with JPMorgan’s Kinexys, Mastercard and Ripple, using the XRP Ledger for settlement.

The transaction involved OUSG, Ondo’s tokenized U.S. Treasury fund available to accredited investors and qualified purchasers. According to the companies, the redemption settled in under five seconds, outside traditional banking hours.

The pilot connected public blockchain infrastructure with interbank settlement rails. Ondo processed the redemption on the XRP Ledger, Mastercard’s Multi-Token Network routed the instructions, and JPMorgan delivered U.S. dollars to Ripple’s Singapore bank account through Kinexys.

Ondo President Ian De Bode said the transaction showed how tokenized U.S. Treasuries can move across borders and banks in near-real time. RippleX senior vice president Markus Infanger said the pilot showed institutions can execute tokenized asset transactions through a single integrated flow.

XRP Ledger Used for Treasury Redemption

The XRP Ledger served as the blockchain settlement layer for the transaction. The companies said the process completed in under five seconds, compared with the one to three business days often associated with cross-border correspondent banking.

OUSG represents tokenized exposure to U.S. Treasuries and is part of a growing market for real-world assets on blockchain networks. Ondo has focused on bringing institutional-grade financial products on-chain, including Treasury-linked products for qualified investors.

The pilot was designed to test how tokenized fund redemptions can connect with fiat settlement. Instead of operating only within a crypto environment, the transaction linked on-chain redemption activity with bank-delivered dollars.

Mastercard and JPMorgan Link Fiat Rails

Mastercard’s Multi-Token Network supported interoperability between tokenized assets and traditional money movement. Its role was to route instructions between the blockchain transaction and banking infrastructure.

JPMorgan’s Kinexys platform handled the banking side of the settlement. Kinexys has processed more than $3 trillion in total transactions, according to figures cited by the companies.

The pilot comes as major financial institutions continue expanding tokenization work. Tokenized deposit volumes across large banks have grown from smaller pilots into larger transaction flows, while the DTCC has said it plans to launch a tokenization service later this year.

Tokenization Push Gains Institutional Support

The transaction adds to growing institutional interest in tokenized Treasuries, tokenized deposits and blockchain-based settlement. The main focus is faster processing, extended operating hours and clearer links between digital assets and traditional finance systems.

For Ripple, the pilot places the XRP Ledger inside a transaction involving major financial firms and a tokenized Treasury product. XRP traded near $1.42 after the announcement, up about 1% on the day and around 6% over the month.

The pilot does not replace existing banking systems, but it shows how public blockchains can be connected with regulated financial infrastructure. For tokenized assets, the next stage will depend on institutional adoption, regulatory treatment and whether banks expand these settlement models beyond controlled tests.

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