- Ripple redeemed OUSG on the XRP Ledger in a pilot involving Ondo, Mastercard and Kinexys by J.P. Morgan.
- The XRP Ledger processed the tokenised Treasury asset leg in under five seconds.
- Mastercard routed settlement instructions while Kinexys delivered U.S. dollars to Ripple’s Singapore bank account.
Ripple and Ondo Finance tested a cross-border tokenised Treasury redemption that joined XRP Ledger settlement with Mastercard messaging and JPMorgan bank rails.
The pilot involved Ripple redeeming part of its OUSG holdings on the XRP Ledger. OUSG is Ondo’s tokenised short-term U.S. government Treasury product, designed to represent exposure to Treasury-backed assets onchain.
The XRP Ledger processed the asset leg in under five seconds. Mastercard’s Multi-Token Network routed the fiat settlement instruction, and Kinexys by J.P. Morgan handled the bank-rail payment to Ripple’s Singapore account.
That made the test narrow but useful: one leg moved on a public blockchain, while the cash leg stayed inside regulated banking infrastructure.
Hybrid Settlement Flow
The transaction matters because it did not try to replace the banking system outright. It linked a public blockchain asset movement with regulated payment infrastructure.
Ondo processed the tokenised fund redemption on XRP Ledger, while Mastercard and Kinexys handled the offchain cash leg.
Supporting coverage described the pilot as the first cross-border, cross-bank redemption of a tokenised US Treasury fund. It also showed the transaction could run outside traditional banking hours, evidently a key selling point for tokenised RWAs
For Ripple, the test puts XRP Ledger back into the institutional settlement conversation. The network handled the public-chain portion of a transaction involving Ondo, Mastercard and JPMorgan infrastructure.
Tokenised Treasury products have grown because they offer onchain access to short-term U.S. government debt, but redemption and cash movement still need links to traditional banking.
Mastercard’s role was also specific. Its Multi-Token Network carried settlement instructions between the blockchain transaction and bank payment systems, rather than acting as the custodian of the Treasury product.
The result should be treated as a pilot, not a commercial launch. The transaction showed that the components can work together, but it does not mean tokenised Treasuries are now moving at scale across those rails.
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