JPMorgan, Mastercard settle treasury redemption on XRP Ledger

JPMorgan and Mastercard completed a cross-border, cross-bank redemption of a tokenized U.S. Treasury fund on the XRP Ledger, sending U.S. dollars from JPMorgan’s Kinexys platform to Ripple’s Singapore bank account after Ondo Finance redeemed tokens representing the US Ondo Short-Term U.S. Government Treasuries (OUSG) fund.

Ondo Finance used its tokenization platform to execute the redemption on the public XRP Ledger. Mastercard’s Multi-Token Network transmitted settlement instructions to JPMorgan’s Kinexys, which then delivered the dollar proceeds to Ripple’s account in Singapore.

Ondo Finance described the transaction as “for the first time, a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund together in real time.”

The pilot, announced Wednesday, follows an earlier test in May 2025 when JPMorgan and Ondo moved the same tokenized Treasury fund across a public and a permissioned blockchain network. Participants said the work aims to speed cross-border payments, lower costs and enable settlement outside standard banking hours.

Market data show growing tokenization of real-world assets: more than $31.1 billion of such assets, excluding stablecoins, are currently tokenized on-chain, according to on-chain tracking. Consulting firms have published wider projections, including estimates of $16 trillion by 2030 from one consultant and $2 trillion by another. In January, Intercontinental Exchange announced plans for a tokenization platform to support 24/7 trading and near-instant settlement for stocks and ETFs.

An International Monetary Fund report in April flagged risks tied to tokenization, including the potential shift of some risks from banks to shared ledgers and smart contract code, which could complicate intervention during stress events. The IMF also warned that unclear legal rules on ownership records and settlement finality could leave tokenized markets fragmented.

At Consensus Miami 2026, investor Kevin O’Leary said significant capital will not be tokenized until U.S. crypto market structure legislation is adopted and services comply with Securities and Exchange Commission rules. “When that occurs, it’s going to change everything,” he said.

Regulatory clarity, legal frameworks for custody and ownership, and rules for settlement finality remain cited barriers to wider adoption. Firms and industry participants continue to test hybrid arrangements that link public blockchains with traditional interbank rails to settle tokenized assets across borders.