Ondo Finance offers tokenized US Treasuries on XRP Ledger

Ondo Finance, a key player in onchain finance, has recently revealed its latest offering of tokenized US Treasuries on the XRP Ledger (XRPL), further expanding the array of institutional-grade products available onchain.

This new initiative enables institutional investors to access Ondo Short-Term US Government Treasuries (OUSG), backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). These treasuries can be minted and redeemed using Ripple USD (RLUSD), a stablecoin denominated in USD.

The unveiling of this offering follows Ondo Finance’s strategic move to establish its presence in the Asia Pacific region through the opening of its first office in the area. This expansion aligns with the growing interest in digital assets in the region, driven by factors such as a burgeoning crypto community, evolving regulatory frameworks, and a rising demand for exposure to US assets.

In collaboration with Ripple, Ondo Finance has secured commitments to seed OUSG liquidity post its initial deployment. This collaboration aims to encourage the broader adoption of tokenized RWAs on the XRPL. Ondo Finance’s provision of OUSG on the XRPL represents an extension of Ripple’s existing investments in tokenized US Treasuries, building upon its earlier stake in OpenEden’s TBILL. The move to offer OUSG on the XRPL addresses the market demand for liquidity, efficiency, and transparency through a secure onchain solution.

Furthermore, the XRPL comes equipped with inherent compliance features, including institutional-grade security ensured by short-term US Treasuries managed with Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance measures. Other compliance features include the use of decentralized Identifiers (DIDs) and onchain credential management to facilitate adherence to regulatory requirements. Additionally, OUSG and RLUSD provide institutional investors with low-risk liquidity services, enabling convenient portfolio management and increased accessibility to tokenized US Treasuries.

The XRPL’s robust and scalable decentralized blockchain technology allows for streamlined tokenization and trading of RWAs, thanks to its high throughput, reduced fees, and reliability. Overall, these features contribute to a seamless and efficient onchain solution for institutional investors seeking exposure to tokenized US Treasuries.

In conclusion, this integration between Ondo Finance and the XRPL not only merges a compliant, yield-bearing product with a network designed for institutional adoption but also supports the expansion of capital markets onchain for institutions.