Ondo pilots near-real-time OUSG redemption via XRP Ledger

Ondo Finance on May 6 ran a pilot that executed a near‑real‑time, cross‑border redemption of its Ondo Short‑Term U.S. Government Treasuries (OUSG) token on the XRP Ledger. The pilot settled fiat proceeds to a Ripple bank account in Singapore using Mastercard’s Multi‑Token Network (MTN).

The test was conducted with J.P. Morgan’s Kinexys, Mastercard and Ripple. Ripple redeemed a portion of its holdings in the OUSG fund on the XRP Ledger, which triggered a fiat settlement through Mastercard’s MTN. J.P. Morgan’s Kinexys infrastructure initiated the fiat payment, and the funds were routed through the bank’s correspondent network to the account in Singapore.

The workflow linked a public blockchain event-the token redemption on the XRP Ledger-to traditional banking rails to complete an end‑to‑end cross‑border settlement. The transaction settled outside normal banking hours and showed only minimal delay between the on‑chain redemption and the bank credit.

Ripple described the pilot as “a meaningful step toward 24/7 global financial markets,” adding that combining the XRP Ledger with global banking infrastructure enabled institutions to execute cross‑border transactions in a single integrated flow.

On May 4, Ondo was selected to join a Depository Trust & Clearing Corporation working group that includes BlackRock, Goldman Sachs and Franklin Templeton. The DTCC group aims to define how traditional capital markets infrastructure can be adapted for on‑chain issuance and transfer of tokenized securities.

Ondo characterized the pilot as evidence that tokenized funds can be converted to bank‑intermediated fiat and moved across borders using public ledgers coordinated with bank payment networks. The companies involved described the pilot as a potential model for banks and asset managers integrating tokenized instruments with existing correspondent banking and settlement processes.