JPMorgan, Ripple Settle Tokenized Treasuries via XRP Ledger

JPMorgan, Ripple, Mastercard and Ondo Finance completed a pilot that used the XRP Ledger together with traditional interbank rails to settle a tokenized U.S. Treasury fund across borders. The firms reported that JPMorgan delivered U.S. dollars into Ripple's Singapore bank account as the final step of the transaction.

The transaction combined an onchain redemption of Ondo's OUSG token, Mastercard's multi-token messaging to carry settlement instructions, and JPMorgan's Kinexys payments platform in a single integrated flow. Ondo executed the fund redemption on the XRP Ledger.

Ripple wrote in a post that the effort linked its public XRP Ledger with global banking infrastructure to execute the cross-border transfer in one flow.

Ondo described the test as an effort to integrate tokenized assets with traditional finance, writing: “Tokenized assets are no longer separate from the global financial system.” The firm added that the pilot was the first time a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund in real time.

OUSG, the Ondo Short-Term U.S. Government Treasuries fund, launched in 2023 and had been issued on Ethereum, Polygon and Solana before Ondo deployed it on the XRP Ledger. Ondo reports OUSG offers a 3.48% APY and has about $610 million in total value locked.

The pilot reused elements from an experiment executed about a year earlier that linked JPMorgan's Kinexys, Chainlink and Ondo in a test settlement of a tokenized Treasuries fund across public and permissioned blockchains.

Participants did not disclose the transaction size or all operational details. The firms said further tests will be required to scale the approach and to address operational, regulatory and custody issues before wider commercial deployment.

Other banks, payments companies and crypto firms have run similar tests aimed at linking tokenized assets and onchain messaging with existing interbank payment channels.