Ondo Finance Expands $185M Tokenized U.S. Treasuries to XRP Ledger
- Ondo Finance is bringing its $185M tokenized U.S. Treasuries (OUSG) to the XRP Ledger (XRPL) to enhance institutional accessibility.
- The move enables 24/7 minting and redemption of OUSG using Ripple's RLUSD stablecoin, with initial liquidity provided by Ripple and Ondo.
- The expansion reflects growing institutional demand for tokenized assets, with the market projected to reach $16T by 2030.
Ondo Finance, a leading tokenized real-world asset (RWA) platform, is expanding its offerings by bringing its $185 million U.S. Treasury token to the enterprise-focused XRP Ledger (XRPL).
The move aims to enhance accessibility for institutional investors seeking blockchain-based liquidity solutions, the companies announced on Tuesday.
The Ondo Short-Term U.S. Government Treasuries (OUSG) token, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), allows qualified investors to mint and redeem tokens 24/7 using Ripple’s RLUSD stablecoin. This deployment is expected to go live within the next six months.
Institutional Adoption and Liquidity Boost
Both Ripple and Ondo Finance have committed seed investments to provide initial liquidity for OUSG on XRPL, though the size of these allocations has not been disclosed.
The initiative marks an expansion of Ripple’s investment in tokenized U.S. Treasuries, following its earlier backing of OpenEden’s TBILL.
Tokenization of RWAs—bringing traditional financial assets like bonds and credit onto blockchain networks—has surged in popularity due to its potential for faster settlements and greater efficiency.
Tokenized U.S. Treasuries have been at the forefront of this trend, growing more than fourfold over the past year to become a $3.5 billion asset class, according to rwa.xyz.
Markus Infanger, Senior Vice President of RippleX, highlighted the significance of the move, stating:
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“The 24/7 intraday settlement enabled by tokenized 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.”
A Growing Market for Tokenized Treasuries
OUSG has previously been available on Ethereum, Polygon, and Solana, and its expansion to XRPL reflects the growing institutional demand for tokenized financial products.
Ondo Finance has already surpassed the $600 million total value locked (TVL) milestone, cementing its status as a major player in the space.
XRPL’s infrastructure offers built-in compliance features such as Decentralized Identifiers (DIDs) and onchain credential management, aligning with regulatory requirements.
The network also boasts high transaction throughput, low fees, and decentralized exchange (DEX), making it well-suited for institutional-grade RWA tokenization.
As the tokenized asset market continues to grow—with projections estimating it could reach $16 trillion by 2030—Ondo Finance’s expansion to XRPL underscores the increasing convergence between traditional finance and blockchain technology.
By leveraging XRPL’s enterprise-grade infrastructure, Ondo Finance and Ripple aim to accelerate institutional adoption of tokenized assets, potentially setting the stage for broader onchain capital markets.
Edited by Harshajit Sarmah
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