Ripple, JPMorgan settle first cross-border tokenized Treasury redemption on XRP Ledger

The pilot, run with Ondo Finance and Mastercard, processed the redemption of Ondo's OUSG tokenized Treasury fund in under five seconds.

What to know:

• Ondo Finance, working with JPMorgan’s Kinexys, Mastercard and Ripple, completed a near-real-time cross-border redemption of its tokenized U.S. Treasury fund OUSG on the XRP Ledger.
• The transaction, which settled in under five seconds and outside traditional banking hours, routed instructions via Mastercard’s Multi-Token Network before JPMorgan delivered dollars to Ripple’s Singapore bank account.
• The pilot underscores how linking public blockchains with interbank settlement rails could enable 24/7 global markets, as tokenized deposit volumes grow and DTCC prepares to launch its own tokenization service.

A key piece of financial infrastructure stitching tokenized assets to traditional banking got a real cross-border test this week.

Ondo Finance said Wednesday it had completed the first near-real-time cross-border redemption of a tokenized U.S. Treasury fund alongside JPMorgan's blockchain platform Kinexys, payments giant Mastercard, and Ripple.

The transaction settled in under five seconds on the XRP Ledger and involved OUSG, Ondo's tokenized U.S. Treasury fund built for accredited investors and qualified purchasers.

The pipeline started with Ondo processing the redemption on the XRP Ledger, after which Mastercard's Multi-Token Network routed the instructions to Kinexys, and JPMorgan delivered the U.S. dollars to Ripple's Singapore bank account.

The whole sequence happened outside traditional banking windows, the kind of cross-border settlement that typically takes one to three business days through correspondent banks.

"By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by JPMorgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close," said Ondo President Ian De Bode in a statement.

Markus Infanger, senior VP at RippleX, said the transaction shows institutions can run cross-border tokenized asset moves as a single integrated flow rather than stitching them together through legacy systems.

The pilot lands as the Depository Trust & Clearing Corporation (DTCC) said earlier this week it would launch its own tokenization service later this year. JPMorgan's Kinexys platform has now processed over $3 trillion in cumulative transactions, with tokenized deposit volumes across major banks moving to billions of dollars over the past year.

XRP and ONDO were down as much as 2% in the past 24 hours alongside a broader pullback across the crypto market.

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