Ondo Finance launches tokenised US Treasuries on XRP Ledger

Ondo Finance has announced the introduction of tokenised U.S. Treasuries to the XRP Ledger, providing institutional investors with access to short-term government securities backed by the BlackRock USD Institutional Digital Liquidity Fund.

This new offering allows these treasuries to be minted and redeemed instantaneously using Ripple USD, a USD-denominated stablecoin. The move is expected to enhance liquidity, efficiency, and transparency in capital markets through the use of the XRP Ledger.

The arrangement between Ripple and Ondo Finance includes commitments to seed liquidity for these tokenised treasuries upon deployment. This marks an expansion of Ripple's previous investments in tokenised U.S. Treasuries, specifically with OpenEden's TBILL.

According to industry forecasts, the market for tokenised assets is projected to reach USD $16 trillion by 2030. Tokenised U.S. Treasuries, such as OUSG, have surged in demand mainly due to institutions seeking improved liquidity and capital management solutions.

Ondo Finance emphasises the security features of this new offering, noting that OUSG carries institutional-grade security and is backed by U.S. Treasuries managed with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance protocols.

Ripple's Markus Infanger commented, "The 24/7 intraday settlement enabled by tokenised assets like OUSG marks a transformative shift in capital flow management, breaking free from traditional trading hours and slow settlements. These low-risk, high-quality liquidity options not only provide better accessibility for investors but also introduce greater stability to blockchain-based markets. By addressing key barriers with Ondo Finance, this innovation supports the broader adoption of DeFi and positions the XRPL as a cornerstone for institutional-grade financial solutions."

As per Katie Wheeler, Vice President of Partnerships at Ondo Finance, "Ondo Finance is proud to bring OUSG, our institutional-grade tokenised U.S. Treasury fund, to the XRP Ledger, a blockchain that institutions already know and trust. This integration is the natural convergence of a compliance-first, yield-bearing product with a network purpose-built for institutional adoption, setting the groundwork for forward-thinking institutions to lead a new era of capital markets onchain."

Ondo Finance has been a pioneer in the tokenised Treasuries space, notably becoming the first platform to exceed USD $600 million in total value locked. This new venture provides qualified investors with 24/7 subscriptions and redemptions, daily interest accruals, low fees, and accessibility across multiple blockchains.

The XRP Ledger offers a range of features suitable for meeting the needs of financial institutions, including tokenisation, trading, escrow, and compliance. Ripple has utilised the XRP Ledger for over a decade to facilitate cross-border payments and digital asset management.