Ondo, JPMorgan, Mastercard, Ripple Settle Tokenized Treasuries

Ondo Finance, JPMorgan’s Kinexys, Mastercard and Ripple completed a pilot on Wednesday that settled a cross-border, cross-bank redemption of Ondo’s tokenized U.S. Treasury fund OUSG on the XRP Ledger in under five seconds, settling outside normal banking hours.

Mastercard’s Multi-Token Network served as the bridge between on-chain tokens and traditional fiat settlement. Kinexys, JPMorgan’s blockchain infrastructure platform, handled integration with correspondent banking and settlement networks. Ripple’s XRP Ledger recorded and moved the tokens representing shares of OUSG. OUSG is offered to accredited investors and qualified purchasers.

Ian De Bode, president of Ondo, said, “By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by JPMorgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close.” Markus Infanger, senior vice president of RippleX, characterized the test as evidence that tokenized assets can move “seamlessly between public blockchain infrastructure and the global financial system,” and added that the pilot demonstrated institutions can execute cross-border transactions as a single, integrated flow.

The participants reported the end-to-end redemption completed in less than five seconds. JPMorgan’s Kinexys platform is noted by the firm as having processed more than $3 trillion in transactions. Market infrastructure providers have expanded tokenized deposit and securities systems in recent months, and the Depository Trust & Clearing Corporation plans to launch a tokenization service later this year.

Technical disclosures from the partners stated Mastercard handled conversion and transfer between the on-chain asset and fiat settlement rails, while Ripple’s ledger provided the public blockchain layer for settlement. Participants reported the architecture allowed the redemption to move across jurisdictions and correspondent banking corridors without waiting for standard clearing cycles.

The companies described the pilot as a demonstration rather than a commercial launch. OUSG remains available only to accredited investors and qualified purchasers. Wider adoption of tokenized securities will depend on regulatory clarity, custody arrangements, accounting practices and uptake by banks and asset managers.