A significant financial infrastructure milestone was achieved this week with a cross-border test of tokenized assets linked to traditional banking.
Ondo Finance announced on Wednesday the successful completion of the first near-real-time cross-border redemption involving its tokenized U.S. Treasury fund, executed in conjunction with JPMorgan’s blockchain platform Kinexys, Mastercard, and Ripple. The transaction concluded in under five seconds on the XRP Ledger, leveraging OUSG, Ondo’s tokenized U.S. Treasury fund designed for accredited investors and qualified purchasers.
The process began with Ondo handling the redemption on the XRP Ledger, subsequently routing instructions through Mastercard’s Multi-Token Network to Kinexys, culminating in JPMorgan depositing U.S. dollars into Ripple’s Singapore bank account. This entire sequence occurred outside conventional banking hours, contrasting sharply with typical cross-border settlements that usually span one to three business days via correspondent banks.
Markus Infanger, senior VP at RippleX, highlighted that the transaction demonstrates how institutions can execute cross-border tokenized asset transactions as an integrated flow rather than piecing them together through outdated systems.
This pilot comes shortly after the Depository Trust & Clearing Corporation (DTCC) announced plans to introduce its own tokenization service later this year. JPMorgan’s Kinexys platform has processed over $3 trillion in cumulative transactions, with tokenized deposit volumes across major banks escalating into billions of dollars over the past year.
In recent 24 hours, both XRP and ONDO experienced a decline of up to 2%, aligning with broader downturns across the cryptocurrency market.