Ripple and Ondo Finance have partnered to issue tokenized U.S. treasuries on the XRP Ledger.
The partnership brings Ondo Short-Term US Government (OUSG) tokens to XRPL with the help of Ripple stablecoin RLUSD. This configuration allows institutions to issue and redeem OUSG 24/7, which will enhance efficiency and bolster blockchain’s position as a connector between traditional finance and digital assets.
OUSG tokens expand access for institutions
Ondo claims that the implementation of OUSG on XRPL gives institutions a contemporary modernization of financial assets, which is compliant and composable. The company asserted that the project can assist institutions with cash on-chain and establish institutional DeFi possibilities. Its Chief Strategy Officer, Ian De Bode, stressed that OUSG, together with RLUSD settlement, will expand the range of access to high-quality financial instruments and retain them as reliable and institutional-grade.
Ripple highlights liquidity and speed benefits
RippleX Senior Vice President Markus Infanger claimed that tokenized finance has become increasingly mature with the launch. He described institutions’ ability to hold treasuries safely and compliantly in XRPL and experience faster settlement and more solid liquidity. The total value locked is over $1.3 billion, and OUSG alone is worth over $690 million. As such, Ondo Finance is among the most extensive tokenized Treasury offerings alongside BlackRock and Franklin Templeton.
Ripple targets leadership in tokenized assets
With XRPL, Ripple intends to make it a major settlement network for tokenized assets. The most recent improvements, including liquidity, stablecoin infrastructure, and programmability, were made to be appealing to institutions. The integration of traditional finance with blockchain would provide a safe space for tokenized asset management and institutionalize DeFi.
Ondo is also broadening its physical assets offerings, as it has more than 100 U.S. stocks and ETFs on its Global Markets platform. The company intends to tokenize over 1,000 securities listed in the U.S. and spread them on various blockchains, such as Solana and BNB Chain. It will also expand with partnerships with big wallets and startups, like Block Street, bringing on new advanced functionality like borrowing and scale-based hedging.
