Ripple, Mastercard, Ondo Finance and JPMorgan have completed a pilot transaction that used the XRP Ledger and bank payment infrastructure to redeem a tokenized U.S. Treasury fund across borders.
The transaction involved Ondo’s Short-Term U.S. Government Treasuries fund, known as OUSG. Ripple redeemed part of its OUSG holdings on the XRP Ledger, while the related U.S. dollar payment was delivered to Ripple’s bank account in Singapore through JPMorgan’s correspondent banking network.
The companies said the pilot tested a model for near real-time settlement outside standard banking cut-off times. It combined a public blockchain, tokenized fund redemption, Mastercard’s Multi-Token Network and Kinexys by JPMorgan in one transaction flow.
XRP Ledger Processes Tokenized Treasury Redemption
Ondo processed Ripple’s OUSG redemption on the XRP Ledger, a public blockchain used for digital asset settlement. The transaction represented the on-chain portion of the redemption process for a tokenized U.S. Treasury product.
OUSG gives investors tokenized exposure to short-term U.S. government debt instruments. The product was launched in 2023 and has been issued across several blockchain networks, including Ethereum, Polygon, Solana and the XRP Ledger.
After Ondo completed the redemption on the XRP Ledger, Mastercard’s Multi-Token Network routed the payment instruction to Kinexys by JPMorgan. Kinexys then debited Ondo’s Blockchain Deposit Account and supported the dollar transfer to Ripple’s Singapore account.
Ripple said the pilot showed that institutions can use blockchain and global banking infrastructure in a single cross-border transaction process. Ondo said the transaction connected tokenized assets with the wider financial system through coordinated settlement.
Mastercard and JPMorgan Connect Payment Rails
Mastercard’s Multi-Token Network was used to link on-chain activity with fiat payment instructions. The network is designed to support interaction between tokenized assets and traditional financial accounts.
JPMorgan participated through Kinexys, its blockchain-based payments and settlement platform. Kinexys supported the bank-side movement of U.S. dollars after the tokenized fund redemption took place on the XRP Ledger.
The transaction placed one part of the process on a public blockchain and the other on regulated banking infrastructure. The companies said this approach may reduce reliance on separate manual instructions, wire transfers and limited banking hours for tokenized fund redemptions.
The pilot also follows previous tokenization tests involving JPMorgan, Chainlink and Ondo Finance. Those earlier tests examined how tokenized U.S. Treasury funds could move between public and permissioned blockchain networks.
Zack Chestnut, global head of commercialisation at Kinexys by JPMorgan, said institutional-scale tokenized markets require cooperation across public blockchains, global banks and payment networks. Mastercard’s Raj Dhamodharan said tokenized commerce is moving toward real-time use through existing bank accounts.
Tokenized Treasury Settlement Expands Across Banks
The pilot comes as tokenized U.S. Treasuries continue to gain activity in digital asset markets. These products allow investors to hold blockchain-based claims tied to funds backed by short-term government securities.
Ondo said OUSG offers a 3.48% APY and has about $610 million in total value locked. The fund is one of several tokenized Treasury products being used by crypto firms, asset managers, and institutional investors.
Activity on the XRP Ledger has also grown in real-world assets. Data cited from RWA.xyz showed the total value of tokenized real-world assets on the network above $3 billion, with tokenized U.S. Treasuries on the ledger reported above $418 million.
The pilot was described as a near real-time, cross-border, and cross-bank redemption of a tokenized U.S. Treasury fund. It did not announce a full commercial rollout or a date for wider market use.
The companies said the same structure could support redemptions from any public blockchain where OUSG is issued. That would allow tokenized funds to remain available across multiple networks while connecting to bank settlement systems.
For Ripple, Mastercard, Ondo, and JPMorgan, the pilot tested how tokenized assets can be redeemed and settled with fiat payments across borders. The transaction adds to ongoing work by banks, payment firms, and blockchain companies to build financial market systems that can operate beyond traditional business hours.
