Ondo Finance Connects Xrp Ledger With Interbank Settlement Rails

@OndoFinance, Kinexys by @JPMorgan, @Mastercard, and @Ripple have completed what they describe as the first near real-time, cross-border redemption of a tokenized U.S. Treasury fund, executed outside traditional banking cut-off windows.

How the Transaction Worked

As part of the pilot, @Ripple redeemed a portion of its Ondo Short-Term U.S. Government Treasuries ($OUSG) holdings on the $XRP Ledger. @OndoFinance processed the redemption and initiated a fiat payout instruction via the Mastercard Multi-Token Network, which routed the instruction to Kinexys by J.P. Morgan. From there, fiat settlement execution was initiated on Kinexys by J.P. Morgan's blockchain infrastructure, which also supported onward instruction to J.P. Morgan's correspondent banking network for cross-border delivery of funds. J.P. Morgan ultimately delivered settlement to @Ripple's Singapore account.

The transaction represents a redemption of a tokenized treasury asset executed in near real-time, outside traditional cut-off windows, paired with a cross-border transfer of funds triggered on blockchain infrastructure. One leg of the transaction occurred on a public blockchain, while the other settled on bank infrastructure. This is the first transaction of its kind between global financial institutions.

What It Means for Institutional Markets

For tokenized financial products to operate at institutional scale, settlement infrastructure must function across banks and geographies outside traditional operating windows. This pilot demonstrates a practical framework for continuous, real-time coordination between transacting parties on public blockchains and global banking infrastructure.

The architecture framework is designed to support redemptions from any public blockchain on which $OUSG is issued, including the $XRP Ledger, providing a model for how Ondo tokenized assets can integrate with financial networks.

Markus Infanger, SVP of RippleX, said the milestone shows that tokenized assets can move seamlessly between public blockchain infrastructure and the global financial system, and that when $XRP Ledger's real-time asset movement is paired with global banking infrastructure, institutions can execute cross-border transactions as a single, integrated flow.

The four partners say the work is part of a broader push toward round-the-clock global markets. Tokenized U.S. Treasuries now exceed $7 billion in total value locked, surpassing milestones faster than ever.

Sources:
PR Newswire: Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple Complete First Cross-Border Redemption of Tokenized U.S. Treasuries
Ripple Insights: Tokenized Treasuries Go Live on the XRPL