Quick overview

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Morgan, Mastercard, Ripple, and Ondo Finance have successfully finished a pilot that allowed the repurchase of tokenized US Treasury bonds between banks and across borders in almost real time.

The operation depended on Ripple purchasing Ondo Short-Term US Government Treasuries (OUSG) tokens on the XRP Ledger via JPMorgan’s Kinexys platform and Mastercard’s Multi-Token Network, which then sent the funds to Ripple’s Singaporean bank account.

Ondo Finance processed Ripple’s acquisition of OUSG on the XRP Ledger, a public blockchain.

The settlement instructions were sent to JPMorgan’s blockchain division Kinexys via Mastercard’s Multi-Token Network. JPMorgan subsequently transferred the matching dollars to Ripple’s Singaporean bank account.

The dollar portion was not fully on-chain; instead, it moved through the conventional banking system. This hybrid model keeps fiat currency flows within controlled channels while enabling institutions to take advantage of blockchain infrastructure.

Tokenized assets have been settled across borders and banks, outside of regular banking hours, according to the four companies that did this test. Having joined the XRP Ledger earlier in this cycle to increase institutional access, OUSG is one of the biggest tokenized Treasury products.

“This pilot is a significant step in creating an institutional framework for tokenized asset markets. Chief commercial officer Zack Chestnut of Kinexys by JP Morgan stated in a statement. According to RWA, the total value of tokenized US Treasury bonds is now close to $15 billion. xyz. Although this sum is still tiny in comparison to the $30 trillion Treasury bond market, it has increased dramatically since 2024 due to banks.