Ondo Finance announced on May 6, 2026, the successful completion of the first near-real-time, cross-border redemption of a tokenized U.S. Treasury fund, using the XRP Ledger (XRPL) and Mastercard’s Multi-Token Network (MTN). The pilot, executed in partnership with J.P. Morgan’s Kinexys, Ripple, and Mastercard, represents a significant breakthrough in bridging public blockchain infrastructure with traditional banking systems.
Transaction Details: Ripple Redeems OUSG Fund Holdings
In the pilot, Ripple redeemed a portion of its holdings in the Ondo Short-Term U.S. Government Treasuries (OUSG) fund. The redemption was initiated on the XRP Ledger and triggered a fiat settlement via Mastercard’s MTN. The settlement process used J.P. Morgan Kinexys’ blockchain infrastructure to originate the fiat payment, which was then routed through the bank’s correspondent network to Ripple’s bank account in Singapore. The entire workflow demonstrated that tokenized assets can be liquidated and settled across international borders and outside traditional banking hours with minimal delay.
Solving the 'Last Mile' Challenge for Tokenized Real-World Assets
This milestone directly addresses one of the primary friction points in the adoption of tokenized real-world assets (RWA): the 'last mile' of settlement, where digital tokens must be converted back into usable bank-intermediated currency. By combining the XRP Ledger with global banking infrastructure via Mastercard MTN, the pilot proves that 24/7 real-time settlement for tokenized assets is achievable, a critical requirement for institutional adoption.
Ripple characterized the test as a foundational shift for the industry, stating: “This is a meaningful step toward 24/7 global financial markets. 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 to Standardize On-Chain Infrastructure
Just days before the pilot, on May 4, 2026, Ondo Finance was selected to join an industry working group led by the Depository Trust and Clearing Corp. (DTCC) to help define standards for bringing traditional capital market infrastructure 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 tokenization. Ondo’s participation is expected to further align its tokenized products — including OUSG and the Ondo U.S. Treasury (ONDY) fund — with institutional requirements.
Ondo Finance currently manages over $600 million in total locked value (TVL) across its tokenized funds. The successful cross-border redemption pilot is likely to accelerate the adoption of tokenized assets as a tool for institutional liquidity management and cross-border payments, bridging the gap between decentralized finance and traditional banking.