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JPMorgan, Mastercard, Ripple, and Ondo Finance have completed a cross-border, cross-bank redemption of a tokenized U.S. Treasury fund using the XRP Ledger and traditional banking rails.<\/strong><\/p>\n <\/p>\n The pilot involved<\/a> Ondo Finance\u2019s OUSG fund, a tokenized short-term U.S. government Treasury product. Ripple redeemed part of its OUSG holdings on the XRP Ledger, while Mastercard\u2019s Multi-Token Network sent settlement instructions to Kinexys by J.P. Morgan.<\/p>\n JPMorgan then moved U.S. dollar proceeds to Ripple\u2019s bank account in Singapore through its correspondent banking network. The asset leg on the XRP Ledger was processed in under five seconds, according to Ondo\u2019s announcement.<\/p>\n <\/p>\n Ondo Finance President Ian De Bode said, \u201cThis milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows.\u201d<\/p>\n The transaction shows how tokenized assets can connect with banking systems without replacing them. One part of the transaction happened on a public blockchain, while the fiat side moved through bank infrastructure.<\/p>\n The firms said the setup could support settlement outside normal banking hours. That matters because many redemptions still depend on wire transfers, manual steps, and limited cut-off times.<\/p>\n Markus Infanger, SVP of RippleX, said the pilot showed how institutions can run cross-border transactions as \u201ca single, integrated flow.\u201d Mastercard\u2019s Raj Dhamodharan also said tokenized commerce is moving toward real-time use at scale.<\/p>\n The pilot also comes after crypto.news reported that Ripple has been building corporate treasury tools for fiat, RLUSD, XRP, and other digital assets. That move placed Ripple deeper into on-chain cash management and treasury workflows.<\/p>\n The transaction comes as major financial firms increase work on real-world asset tokenization. Crypto.news recently reported that DTCC plans limited production trades of tokenized securities in July 2026, before targeting a full DTC tokenization service in October.<\/p>\n That DTCC working group includes more than 50 firms from traditional finance and crypto. The list includes BlackRock, Goldman Sachs, J.P. Morgan, Morgan Stanley, Circle, Ondo Finance, Ripple Prime, NYSE Group, Nasdaq, and Kraken\u2019s parent company Payward.<\/p>\n Crypto.news also reported that tokenized U.S. Treasuries remain the largest real-world asset segment by market value. Tokenized public equities have grown faster, but Treasury products still anchor the sector because of yield demand and clearer market structure.<\/p>\n RWA.xyz data also shows<\/a> that tokenized real-world assets remain a multi-billion-dollar market. At the time checked, its dashboard showed $26.71 billion in distributed asset value, excluding stablecoins.<\/p>\n The pilot gives banks and crypto firms another live example of how public blockchains can work with regulated payment systems. However, wider adoption still depends on legal clarity, risk controls, and rules for settlement finality.<\/p>\n The IMF said in an April note that tokenized finance needs<\/a> clear policy frameworks, safe settlement assets, strong code governance, legal certainty, and international coordination. It warned that weak safeguards could raise risks through speed, concentration, and fragmented systems.<\/p>\n\n
Tokenized funds move beyond test cases<\/strong><\/h2>\n
Wall Street expands tokenization work<\/strong><\/h2>\n
Regulation remains the next test<\/strong><\/h2>\n