A significant development in the realm of tokenized assets was announced by Ondo Finance on Wednesday, as they successfully executed the first near-real-time cross-border redemption of a tokenized U.S. Treasury fund using JPMorgan’s Kinexys blockchain platform, alongside Mastercard and Ripple.
The transaction was completed in under five seconds on the XRP Ledger, according to an announcement by the involved companies. This pilot involved OUSG, a tokenized U.S. Treasury fund offered by Ondo to accredited investors and qualified purchasers.
“This achievement marks the first instance of tokenized U.S. Treasuries settling across borders and banks in near-real time outside traditional banking hours,” stated Ian De Bode, President of Ondo. “By integrating public blockchain infrastructure with interbank settlement rails, we are setting the stage for a 24/7 global market that is always open.”
Mastercard’s Multi-Token Network played a crucial role by enabling interoperability between on-chain assets and fiat currencies. Markus Infanger, Senior Vice President at RippleX, highlighted how this transaction exemplifies the seamless integration of tokenized assets with the global financial system.
“Combined with existing banking infrastructure, this pilot demonstrates how institutions can manage cross-border transactions as a unified process,” said Infanger.
The partnership between Ondo and JPMorgan is indicative of increasing institutional interest in asset tokenization. Kinexys, JPMorgan’s blockchain platform, has processed over $3 trillion in transactions to date, according to its website. Meanwhile, major banks are expanding their tokenized deposit systems significantly, with volumes escalating from millions to billions within a year. Earlier this week, the Depository Trust & Clearing Corporation (DTCC) announced plans to launch a tokenization service later in the year.
Ondo Finance is dedicated to offering institutional-grade financial products on-chain, focusing on the tokenization of traditional assets like U.S. Treasuries for qualified investors. JPMorgan’s Kinexys platform supports settlement and correspondent banking network integration for institutional clients.
XRP, the native asset of XRP Ledger, has seen a 1% increase today, reaching a recent price point of $1.42, which translates to a monthly rise of approximately 6%. However, it remains down about 61% from its all-time high of $3.65 set last July.