Ondo Finance to introduce tokenized US treasuries on Ripple’s XRP Ledger

Ondo Finance, a prominent issuer of tokenized real-world assets (RWA), is set to introduce tokenized U.S. Treasuries to the XRP Ledger (XRPL), broadening the range of institutional-grade products available on-chain. This move is geared towards catering to institutional investors and providing them with convenient access to Ondo Short-Term U.S. Government Treasuries (OUSG) backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). These tokenized U.S. Treasuries can be minted and redeemed around the clock using Ripple USD (RLUSD), an enterprise-grade, USD-denominated stablecoin.

In collaboration with Ripple, Ondo Finance has already secured commitments to provide liquidity for OUSG upon its initial launch. This strategic partnership aims to cultivate further adoption of tokenized real-world assets within the XRPL ecosystem. Ripple’s vested interest in tokenized U.S. Treasuries has been reinforced through previous investments in OpenEden’s TBILL, highlighting the growing demand for liquidity, efficiency, and transparency in capital markets.

The exponential growth of tokenized U.S. Treasuries, epitomized by products like OUSG, is primarily fueled by institutional needs for enhanced liquidity solutions. Industry forecasts project that the tokenized asset market is poised to escalate to $16 trillion by 2030. The XRPL, with its inherent capabilities, is uniquely positioned to facilitate the transition of traditional financial assets onto the blockchain, offering heightened security, verifiable trust, and novel revenue-generating opportunities.

By integrating OUSG onto the XRPL, Ondo Finance aims to cater to institutional demands by offering a secure on-chain solution with institutional-grade security features. OUSG, managed with rigorous KYC and AML compliance measures, provides enhanced accessibility to quality liquidity solutions for institutional investors. The XRPL’s robust technology infrastructure, characterized by high throughput, minimal transaction fees, and unwavering reliability, ensures seamless tokenization and trading of RWAs.

Markus Infanger, Senior Vice President at RippleX, emphasizes the transformative impact of tokenized assets like OUSG on capital flow management. He underscores the significance of 24/7 intraday settlement capabilities in revolutionizing trading practices and enhancing market stability. This innovation not only enhances accessibility for investors but also bolsters blockchain-based markets by offering low-risk, high-quality liquidity options.

Katie Wheeler, Vice President of Partnerships at Ondo Finance, highlights the seamless integration of OUSG into the XRP Ledger, asserting that it aligns with the network’s compliance-centric framework. This collaboration signals a strategic convergence of compliance-driven, yield-generating financial products with a blockchain network tailored for institutional adoption, setting the stage for progressive institutions to lead the charge in on-chain capital market evolution.