Mastercard, Ripple, JPMorgan Chase, and Ondo Finance have jointly completed a cross-border settlement pilot that moved tokenized U.S. Treasuries between public blockchain and interbank networks in near real-time. The transaction involved Ondo's OUSG product—a tokenized short-term Treasury fund issued on the XRP Ledger. Ripple redeemed a portion of its OUSG holdings through the blockchain, and within seconds, the corresponding U.S. dollar proceeds were wired to Ripple's bank account in Singapore via correspondent banking rails.
Three Infrastructure Layers in One Workflow
According to details released by the firms, the settlement flow began with Ripple's redemption instruction on the XRP Ledger. Mastercard's Multi-Token Network routed the settlement data to Kinexys by JPMorgan, the bank's blockchain-based settlement engine. After Kinexys processed the internal ledger entries, JPMorgan transferred the dollar amount through traditional correspondent banking to Ripple's account. Ondo Finance confirmed that the blockchain portion of the transaction settled in under five seconds.
The pilot's key breakthrough is the direct connection between a public blockchain (XRP Ledger) and interbank settlement rails, bypassing the need for intermediaries or manual reconciliation. The transaction was executed outside standard banking hours, demonstrating the potential for a 24/7 institutional settlement cycle. The participating firms said the structure could support continuous financial market operations across different time zones.
First of Its Kind: Tokenized Treasury Cross-Border Settlement
Ondo Finance President Ian De Bode described the transaction as proof that tokenized assets can move through both banking and blockchain systems simultaneously. RippleX Senior Vice President Markus Infanger noted that this was the first reported instance of tokenized U.S. Treasury cross-border settlement between institutions in a near real-time, integrated workflow. Mastercard executive Raj Dhamodharan referenced the initiative as a milestone for tokenized commerce in real-time environments.
The pilot used XRP Ledger—an open, permissionless blockchain—for the tokenized asset leg, while the fiat settlement occurred on JPMorgan's permissioned network (Kinexys). Mastercard's Multi-Token Network acted as the interoperability layer, translating instructions between the two environments.
Ripple's Broader Treasury Infrastructure Play
The pilot aligns with Ripple's ongoing treasury infrastructure efforts involving fiat currencies, RLUSD (its USD stablecoin), XRP, and other digital assets. By partnering with Ondo Finance, Ripple gains the ability to use tokenized U.S. Treasuries—a highly liquid instrument—as part of cross-border settlement collateral. Ondo, in turn, burns the corresponding OUSG tokens on the XRP Ledger upon redemption.
The total market for tokenized U.S. Treasury products has surpassed $2 billion, with Ondo Finance among its largest issuers. The pilot indicates that institutional holdings of such tokens can now serve not only as yield-bearing collateral but also as real-time settlement tools across borders. JPMorgan's Kinexys handled the fiat payout, highlighting how traditional banks are building on-ramps and off-ramps for blockchain-based assets.
Transaction amounts were not disclosed, but the firms emphasized the speed (seconds) and the off-hours execution. If scaled, this model could reduce friction in cross-border payments and serve as a complementary layer to legacy systems like SWIFT.