Ripple and JPMorgan Complete First Cross-Border Tokenized Treasury Redemption on XRP Ledger
The pilot, executed in collaboration with Ondo Finance and Mastercard, facilitated the redemption of Ondo’s OUSG tokenized Treasury fund in less than five seconds.
Key takeaways:
— In partnership with JPMorgan’s Kinexys, Mastercard, and Ripple, Ondo Finance successfully executed a near-instantaneous cross-border redemption of its tokenized U.S. Treasury fund, OUSG, on the XRP Ledger.
— Settling in under five seconds and operating outside conventional banking hours, the transaction directed instructions through Mastercard’s Multi-Token Network before JPMorgan transferred funds to Ripple’s Singapore banking account.
— This initiative highlights the potential for connecting public blockchains with interbank settlement systems to support continuous global markets, especially as tokenized deposit volumes expand and the DTCC readies its own tokenization platform.
A crucial component of financial infrastructure bridging tokenized assets with conventional banking underwent a real-world cross-border test this week.
Ondo Finance announced on Wednesday that it had finalized the first near-real-time cross-border redemption of a tokenized U.S. Treasury fund in collaboration with JPMorgan’s blockchain platform Kinexys, payments leader Mastercard, and Ripple.
The transaction, which cleared in under five seconds on the XRP Ledger, centered on OUSG, Ondo’s tokenized U.S. Treasury fund designed for accredited investors and qualified purchasers.
The process began with Ondo initiating the redemption on the XRP Ledger, followed by Mastercard’s Multi-Token Network routing the instructions to Kinexys, and JPMorgan transferring U.S. dollars to Ripple’s Singapore bank account.
This entire sequence occurred outside standard banking hours, contrasting sharply with cross-border settlements that usually require one to three business days via correspondent banks.
«By linking public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by JPMorgan, Mastercard, and Ripple are establishing the foundation for 24/7 global markets that never close,» stated Ondo President Ian De Bode in a statement.
Markus Infanger, senior VP at RippleX, noted that the transaction demonstrates how institutions can execute cross-border tokenized asset transfers as a unified integrated flow instead of piecing them together through legacy systems.
This pilot coincides with the Depository Trust & Clearing Corporation (DTCC) announcing earlier this week that it will introduce its own tokenization service later this year. JPMorgan’s Kinexys platform has now facilitated over $3 trillion in cumulative transactions, while tokenized deposit volumes across major banks have surged to billions of dollars over the past year.
XRP and ONDO dropped by as much as 2% in the last 24 hours, aligning with a broader pullback across the crypto market.