Ondo Finance Introduces Tokenized U.S. Treasuries to the XRP Ledger
In a significant development for the blockchain and finance sectors, Ondo Finance, a pioneering company in the issuance of tokenized real-world assets (RWAs), has announced the introduction of tokenized U.S. Treasuries to the XRP Ledger (XRPL). This move expands the array of institutional-grade products available on blockchain technology. Institutional investors will now have access to Ondo Short-Term U.S. Government Treasuries (OUSG), which are supported by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). These treasuries can be minted and redeemed around the clock using Ripple USD (RLUSD), a stablecoin backed by the U.S. dollar.
Ripple, a notable player in the digital finance space, alongside Ondo Finance, has secured commitments to provide liquidity for OUSG at its initial launch, aiming to drive greater adoption of tokenized RWAs on the XRPL. This initiative builds on Ripple’s earlier investment in OpenEden’s tokenized U.S. Treasury bills, marking another step in their commitment to integrating traditional financial instruments with blockchain technology.
The Growing Appeal of Tokenized U.S. Treasuries
The demand for tokenized U.S. Treasuries like OUSG has been on a steep upward trajectory, fueled by the need for liquidity, efficiency, and transparency in capital markets. The market for tokenized assets is projected to grow substantially, with estimates suggesting it could reach $16 trillion by the year 2030. The XRPL is strategically positioned to facilitate the integration of traditional financial assets into the blockchain ecosystem, providing enhanced security, verifiable trust, and new opportunities for revenue generation.
Key Features of OUSG on XRPL
By integrating OUSG with the XRPL, Ondo Finance is meeting the growing demand for an onchain solution that provides several benefits:
- Institutional-Grade Security: OUSG is underpinned by short-term U.S. Treasuries, managed with strict adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The XRPL’s built-in compliance features, such as Decentralized Identifiers (DIDs) and onchain credential management, ensure regulatory compliance.
- Accessible Liquidity: With OUSG and RLUSD, institutional investors have access to high-quality, low-risk liquidity solutions, facilitating efficient portfolio management and easier access to tokenized U.S. Treasuries.
- Scalable Blockchain Technology: The XRPL’s high throughput, low fees, and reliability support the seamless tokenization and trading of RWAs.
Markus Infanger, Senior Vice President at RippleX, commented on the development, highlighting the transformative impact of 24/7 intraday settlement enabled by tokenized assets like OUSG. He noted that these low-risk liquidity options enhance investor accessibility and introduce greater market stability. The collaboration with Ondo Finance addresses key barriers to adoption and positions the XRPL as a cornerstone for institutional-grade financial solutions.
Katie Wheeler, Vice President of Partnerships at Ondo Finance, expressed pride in bringing OUSG to the XRP Ledger, a blockchain trusted by many institutions. She emphasized that this integration represents the convergence of a compliance-first, yield-bearing product with a network designed for institutional adoption, paving the way for forward-thinking institutions to lead a new era of onchain capital markets.
Ondo Finance’s Milestone and the Role of XRPL
Ondo Finance has achieved a significant milestone as the first platform for tokenized U.S. Treasuries to surpass $600 million in total value locked (TVL). OUSG offers qualified investors instant subscriptions and redemptions 24/7, daily interest accruals, low fees, and availability across multiple blockchains.
The XRP Ledger is designed to meet the needs of traditional financial institutions, offering native features like tokenization, trading, escrow, compliance, and seamless asset movement. These capabilities are foundational for RWA tokenization and institutional decentralized finance (DeFi). For more than a decade, Ripple has utilized the XRPL to enable cross-border payments, digital asset custody, and the issuance of stablecoins. The XRPL’s comprehensive suite of features, including the first native decentralized exchange (DEX), Automated Market Maker (AMM), Decentralized Identifiers (DIDs), Price Oracles, and future advancements like Multi-Purpose Tokens (MPTs), Permissioned Domains, and a Lending Protocol, continues to evolve, reinforcing its reputation as a reliable blockchain for institutional-grade DeFi.
About Ripple
Ripple is a leading provider of digital asset infrastructure for financial institutions, offering simple, compliant, and reliable software solutions that enhance efficiency, reduce friction, and foster innovation in global finance. Ripple’s offerings leverage the XRP Ledger and its native digital asset, XRP, which is designed for fast, low-cost, and highly scalable transactions across various developer and financial use cases. With a proven track record of working with regulators and policymakers worldwide, Ripple’s solutions in payments, custody, and stablecoins are at the forefront of the digital asset economy, building credibility and trust in enterprise blockchain. Together with its customers, partners, and the developer community, Ripple is transforming how the world creates, stores, manages, and moves value.
Important Considerations
It is important to note that OUSG has not been registered under the U.S. Securities Act of 1933 or similar laws in other jurisdictions. Therefore, it cannot be offered, sold, or transferred in the U.S. or to U.S. persons unless registered under the Act or an exemption is available. Ondo I LP, the issuer of OUSG, is not registered as an investment company under the U.S. Investment Company Act of 1940. Acquiring OUSG carries risks, including the potential for total loss of investment. Past performance is not indicative of future results.
Ondo Finance does not endorse or make any representations regarding third-party products, services, or technologies mentioned herein. Users should consult the terms and conditions provided on the Ondo Finance website for additional details.
For more information on Ondo Finance and OUSG, you can visit their official website at Ondo Finance.
This collaboration between Ondo Finance and Ripple, and the introduction of OUSG to the XRP Ledger, represents a significant step forward in the integration of traditional financial assets with blockchain technology. It opens new avenues for institutional investors seeking efficient, secure, and compliant ways to manage their portfolios in the digital age. Through this venture, both companies aim to redefine capital markets and drive the broader adoption of decentralized finance solutions.
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