Ondo Finance Settles Tokenized U.S. Treasuries on XRP Ledger in Real Time

Ondo Finance, Kinexys by J.P. Morgan, Mastercard, and Ripple have completed the first near real-time, cross-border redemption of a tokenized U.S. Treasury fund, settling across banks and borders outside traditional banking windows using both public blockchain infrastructure and legacy interbank rails.

What Did the Pilot Actually Do?

The transaction involved Ripple redeeming a portion of its Ondo Short-Term U.S. Government Treasuries (OUSG) holdings on the XRP Ledger (XRPL). Once the redemption was processed, Ondo initiated a fiat payout instruction through Mastercard's Multi-Token Network (MTN), which routed that instruction to Kinexys by J.P. Morgan.

Kinexys then debited Ondo's Blockchain Deposit Account and delivered U.S. dollar proceeds to Ripple's bank account in Singapore through J.P. Morgan's correspondent banking network.

One leg of the transaction settled on a public blockchain. The other settled on bank infrastructure. According to the firms involved, this is the first transaction of its kind between global financial institutions.

How Did Each Platform Contribute?

Each partner handled a specific layer of the transaction flow. Here is how the settlement chain worked:

• Ondo Finance issued and processed the OUSG redemption on XRPL and initiated the fiat payout instruction
• Mastercard MTN received the instruction and routed it to Kinexys, bridging on-chain assets with traditional fiat payment systems
• Kinexys by J.P. Morgan executed fiat settlement from Ondo's Blockchain Deposit Account and used its correspondent banking network for cross-border delivery
• Ripple was the redeeming party, receiving USD proceeds in its Singapore bank account

The Mastercard Multi-Token Network (MTN) is an interoperability layer that connects on-chain asset activity with traditional financial institutions, allowing banks to interact with blockchain-based commerce without requiring separate payment instructions outside the chain.

Why Does This Matter for Tokenized Asset Redemption?

Tokenized real-world assets (RWAs) have grown significantly as an institutional product category, but the infrastructure supporting redemptions has largely stayed dependent on wire transfers, manual processes, and fixed operating hours tied to bank cut-off windows.

This pilot demonstrates that a blockchain-based redemption can trigger settlement directly through bank infrastructure without requiring separate, siloed payment instructions. The result is a unified transaction flow where both legs, blockchain execution and fiat settlement, operate together rather than sequentially through disconnected systems.

Ian De Bode, President of Ondo Finance, noted this was the first time tokenized U.S. Treasuries had settled across borders and banks in near real time and outside traditional banking windows.

"By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close,” said De Bode.

Is This Built to Scale Beyond a Single Pilot?

The architecture is designed to support redemptions from any public blockchain on which OUSG is issued, not just XRPL. That makes it a replicable framework rather than a one-time demonstration.

Zack Chestnut, Global Head of Commercialization at Kinexys by J.P. Morgan said the pilot moves toward institutional-scale tokenized asset markets and requires cross-industry collaboration across geographies, global banking infrastructure, and public blockchains. 

J.P. Morgan has separately launched a tokenized deposit token on the Base network and plans further expansion to the Canton network.

Conclusion

The Ondo Finance pilot delivers a working model for near real-time, cross-border settlement of tokenized U.S. Treasuries that connects a public blockchain directly with interbank fiat rails. The system processes a redemption on XRPL, routes the fiat instruction through Mastercard MTN, and delivers USD via J.P. Morgan's correspondent banking network, all outside standard cut-off windows. The framework is designed to extend across any chain where OUSG is issued.

Resources

1. Ondi Finance on X: Post on May 6

2. Press release: Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple Complete First Cross-Border, Cross-Bank Redemption of Tokenized U.S. Treasuries

3. Report by The Block: Ripple, JPMorgan and others use XRP Ledger to cash out tokenized Treasurys fund internationally