Ondo, JPMorgan, Mastercard, and Ripple complete the first tokenized bond transaction on XRP Ledger



Ondo Finance, along with JPMorgan (Kinexys), Mastercard, and Ripple, successfully tested the redemption of tokenized short-term U.S. Treasury bond fund (OUSG) into USD across borders in under 5 seconds on XRP Ledger. This was the first interbank transaction to connect a public blockchain with traditional financial systems in real time, 24/7.

Transaction process

Ondo Finance performs the OUSG redemption directly on XRP Ledger for Ripple:

- XRP Ledger handles on-chain processing: transparent, high-speed asset transfer (under 5 seconds).

- Mastercard Multi-Token Network (MTN) serves as the blockchain-to-fiat bridge, enabling USD payments.

- Kinexys (JPMorgan) handles interbank settlement, transferring USD to Ripple’s account in Singapore—completing T+0 outside traditional business hours.

The transaction from the U.S. to Singapore demonstrates the ability to process cross-border in real time for the tokenized Treasuries model, removing complex intermediaries and administrative-hour limitations.

Ondo’s CEO said: “For the first time, tokenized U.S. Treasuries are conducted cross-border among banks in real time.” Ripple also emphasized the capability to connect XRPL with banking infrastructure to create a unified payment workflow.
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