Ondo Finance, a leader in tokenized asset infrastructure, announced on May 6 the successful completion of the first near-real-time, cross-border redemption of a tokenized U.S. Treasury fund. The pilot, conducted in collaboration with J.P. Morgan's Kinexys, Mastercard, and Ripple, represents a significant milestone in bridging the gap between public blockchain networks and traditional banking systems.
Pilot Transaction Details
The transaction involved Ripple redeeming a portion of its holdings in the Ondo Short-Term U.S. Government Treasuries (OUSG) fund. The redemption was executed on the XRP Ledger (XRPL) and triggered a fiat settlement through the Mastercard Multi-Token Network (MTN). The settlement process utilized J.P. Morgan's Kinexys blockchain infrastructure to initiate the fiat payment, which was then routed through the bank's correspondent network to be delivered to Ripple's bank account in Singapore. This workflow demonstrates that tokenized assets can be liquidated and settled across international borders and outside of traditional banking hours with minimal delay.
Solving the Last-Mile Friction
The move addresses a primary friction point in the adoption of tokenized real-world assets (RWAs): the “last mile” of settlement, where digital tokens must be converted back into usable bank-intermediated currency. Ripple characterized the successful test as a foundational shift for the industry. “This is a meaningful step toward 24/7 global financial markets,” Ripple said in a statement. “By combining the XRP Ledger with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions in a single integrated flow.”
Ondo Joins DTCC Working Group
Ondo Finance continues to expand its institutional footprint. On May 4, the firm was selected to join an industry working group led by the Depository Trust and Clearing Corp. (DTCC) to help define how traditional capital market infrastructure can be brought on-chain. The DTCC initiative includes other financial heavyweights such as BlackRock, Goldman Sachs, and Franklin Templeton, signaling a growing consensus among Wall Street institutions toward the tokenization of financial assets. This pilot, combined with Ondo's participation in the DTCC group, suggests that tokenized real-world assets are moving from proof-of-concept toward practical adoption, laying the foundation for broader institutional usage in the near future.