Ondo $407M tokenized Treasury fund spans XRPL, Ethereum

Ondo’s Ondo Short-Term U.S. Treasuries Fund, listed as OUSG, reported a total value of $407.24 million on July 10, 2026. The fund quoted a 3.45% annual percentage yield, offers instant mint and redeem with a $5,000 minimum, and is available only to accredited investors and qualified purchasers.

On that date, OUSG held about $222.07 million on the XRP Ledger and about $185.17 million on Ethereum. The fund’s disclosed positions included approximately $150 million in the State Street Galaxy Onchain Liquidity Sweep Fund, $101.01 million in BlackRock’s BUIDL product, $77.08 million in Franklin Templeton’s BENJI and $69.10 million in Fidelity’s Treasury Digital Fund.

The fund records ownership and processes transfers on blockchain rails while the underlying assets remain in regulated fund structures. Tokenization in these products changes how ownership is recorded, how transfers and settlements occur, and how subscriptions and redemptions are processed, while investor rights and legal ownership are governed by the fund documents and applicable law.

A White House report on digital assets states that regulatory treatment “follows the nature of the underlying asset,” meaning tokens that represent securities are treated as securities under existing frameworks.

Access and compliance controls are part of OUSG’s design. The accredited investor and qualified purchaser limits, together with permissioned platforms, transfer controls and administrator oversight used in similar products, restrict who can hold and move the tokens. Those restrictions can affect secondary-market trading; a published asset value and a quoted yield do not guarantee active trading or easy exits if transfers are limited, redemptions are gated or holdings are concentrated.

Issuers are distributing tokenized Treasury exposure across multiple blockchains rather than relying on a single infrastructure. Products use established crypto rails such as the XRP Ledger and Ethereum while keeping legal structures tied to regulated fund wrappers or qualified-access vehicles. Several issuers publish balances, yields and portfolio holdings for specific onchain products.

Market participants cite a gap between fast, portable dollar exposure provided by stablecoins and the need for widely accepted, yield-bearing collateral for repo, lending and margin. Tokenized short-duration Treasury claims and money-fund–style structures place standard reserve assets onto programmable rails so they can move and be verified inside automated trading and treasury systems without changing the underlying legal protections.

The current state of tokenized sovereign debt includes multi-chain distribution, tokenized funds holding other tokenized funds, and a mix of blockchain operational features with conventional legal frameworks. Market participants continue to assess secondary-market liquidity and behavior in stress scenarios.