Ondo Ignites DeFi Buzz With Launch of Tokenised US Treasuries on XRP Ledger

Tokenisation protocol Ondo Finance is set to enhance its US$185 million (AU$296.7 million) US Treasury token offering by integrating it into the XRP Ledger, with backing from BlackRock’s BUIDL fund.

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This enables around-the-clock token minting and redemption via Ripple’s RLUSD stablecoin and aims to boost liquidity with initial seed investments from both Ripple and Ondo Finance.

Ondo Finance will deploy Ondo Short-Term US Government Treasuries (OUSG), its tokenized US Treasury fund, on the XRP Ledger (XRPL), a decentralized layer-1 blockchain.

Ondo Finance

Ondo and XRPL Merge to Offer Slew of Advantages

According to a statement, the integration is expected to go live within the next six months, in a step that would merge DeFi and TradFi.

This integration establishes an avenue for institutional DeFi and advanced cash management solutions, bringing DeFi and traditional finance closer than ever.

Ondo Finance

The deployment of OUSG on the XRPL offers multiple advantages, set to increase both security and operational efficiency for institutional users.

Backed by secure short-term US Treasuries it incorporates rigorous compliance measures, including decentralised identifiers and on-chain credential management to align with institutional standards.

Additionally, OUSG and RLUSD, “offer high-quality, low-risk liquidity options”, with 24/7 intraday settlement. This allows for more flexible and efficient portfolio management, according to Ondo Finance.

XRPL’s high throughput, low fees and reliability make it a robust platform for tokenised real-world assets, “supporting institutional-grade DeFi and treasury management”.

XRP and ONDO React to Announcement

The announcement sparked a 4.8% increase in Ondo’s ONDO token despite a broader market downtrend. The token trades for US$1.37 (AU$2.19) at the time of writing and has seen a 435% increase over the past year.

Meanwhile, XRP is the only top ten crypto by market cap that’s not in the red on the 24-hour chart. The price of XRP is at US$3.08 (AU$4.94) as per data from CoinMarketCap, a 1.7% increase. XRP has seen a stellar performance over the past year, going up by 487%.

XRP has enjoyed a bit of a moment, as speculations suggest that new leadership at the US Securities and Exchange Commission (SEC) will bring an end to the Ripple lawsuit.

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Then, there’s the potential for a Spot exchange-traded fund (ETF) for XRP in the US, and the extension of a strategic crypto reserve to include other coins beyond Bitcoin.

So, despite the great performance so far, some suggest XRP’s journey to the moon isn’t over, and that it could pull off a move to US$8 (AU$12.83) this cycle.