Ondo, J.P. Morgan, Mastercard settle tokenized Treasury on XRPL

Ondo Finance, J.P. Morgan, Mastercard and Ripple completed a near-real-time cross-border redemption of Ondo’s tokenized U.S. Treasuries (OUSG) on the public XRP Ledger. The U.S. dollar payout was routed through Kinexys by J.P. Morgan and credited to Ripple’s bank account in Singapore.

Ripple redeemed part of its OUSG holdings on the XRP Ledger, where the tokenized Treasury leg of the transaction settled. Ondo processed the onchain redemption and sent a fiat payout instruction over Mastercard’s Multi-Token Network (MTN). Kinexys received the instruction, debited Ondo’s Blockchain Deposit Account and used J.P. Morgan’s correspondent banking network to send U.S. dollars to Ripple’s account in Singapore.

The transaction separated the tokenized asset movement from the cash settlement. XRPL recorded and moved the OUSG tokens while traditional bank infrastructure executed the dollar payout. Participants described that split as addressing a common timing mismatch between 24/7 onchain transfers and bank settlement systems that rely on wires, manual checks and business hours.

Ondo reported the redemption completed near real time and outside normal banking cut-off windows. The firm added that the same architecture can support redemptions from any public blockchain where OUSG is issued.

Ian De Bode, president of Ondo Finance, described the event as “the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows.” Markus Infanger, senior vice president of RippleX, noted, “The XRP Ledger enables real-time asset movement, and when paired with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions as a single, integrated flow.”

Zack Chestnut, global head of commercialization at Kinexys by J.P. Morgan, called the pilot a step toward institutional-scale tokenized asset markets and observed that wider adoption will require cooperation among banks, public blockchains and regional firms.

Mastercard described MTN as a network that carries fiat payout instructions between blockchain-triggered events and bank-facing settlement systems, giving traditional financial firms a way to manage onchain commerce while relying on established banking rails for fiat settlement.

Participants presented the experiment as a test of the technical and operational plumbing needed to link public blockchains and interbank settlement systems so tokenized real-world assets can be redeemed with coordinated onchain and fiat legs.