First Near-Real-Time Cross-Border Tokenized Treasury Redemption

Ondo Finance, in collaboration with JPMorgan's Kinexys platform, Mastercard, and Ripple, completed the first near-real-time cross-border redemption of its tokenized U.S. Treasury fund on Wednesday. The pilot transaction, processed in under five seconds on the XRP Ledger, settled outside traditional banking hours and linked public blockchain infrastructure with interbank settlement systems.

The test involved Ripple redeeming a portion of Ondo Finance's OUSG tokens, which provide on-chain exposure to short-term U.S. Treasuries for accredited investors and qualified purchasers. Ondo Finance handled the redemption on the XRP Ledger. Mastercard's Multi-Token Network then routed the fiat payout instructions to JPMorgan's Kinexys platform, which debited Ondo's blockchain deposit account and delivered U.S. dollars to Ripple's bank account in Singapore via JPMorgan's correspondent banking network. This created a single, integrated flow without separate wire transfers or manual processes.

"This milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near-real time and outside traditional banking windows," said Ian De Bode, president of Ondo...