"Ondo Finance to Bridge DeFi and TradFi with XRP Ledger US Treasury Fund Launch"

Ondo Finance Plans OUSG Launch on XRP Ledger, Bridging DeFi and Traditional Finance

Ondo Finance, a leading blockchain-based financial services provider, has announced plans to launch its tokenized US Treasury fund, Ondo Short-Term US Government Treasuries (OUSG), on the XRP Ledger (XRPL) within the next six months. This move marks a significant step in bridging the gap between decentralized finance (DeFi) and traditional finance (TradFi).

The deployment of OUSG on the XRPL represents a major leap in advancing institutional-grade financial solutions. It marks the collaboration of Ripple and Ondo Finance to seed liquidity for OUSG at launch. The move would encourage the early adoption of tokenized real-world assets (RWAs) on the XRPL.

Ondo Finance’s tokenized treasury fund will leverage XRPL’s infrastructure to bridge the gap between DeFi and TradFi. XRPL’s focus on TradFi and established institutional relationships create a solid foundation for OUSG. In return, OUSG will introduce institutional investors to a high-quality, yield-bearing US Treasury fund on XRPL.

“This integration establishes an avenue for institutional DeFi and advanced cash management solutions, bringing DeFi and traditional finance closer than ever,” an excerpt in the announcement read.

According to the announcement, the product is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). It adheres to stringent KYC/AML standards and blends security, compliance, and yield.

Additional benefits of the collaboration include seamless integration with Ripple’s. According to the report, this would enable round-the-clock minting and redemption of OUSG, granting users unparalleled liquidity and financial flexibility.

Meanwhile, with over a decade of expertise, the XRP Ledger has become a leading blockchain for financial institutions. It supports cross-border payments, digital asset custody, and issuance. Its tailored infrastructure, including advanced compliance tools and upcoming features like Multi-Purpose Tokens (MPTs), strengthens its position as a hub for RWA tokenization.

Recent milestones highlight the XRPL’s growing significance in institutional finance. Ripple initiated beta testing for the RLUSD stablecoin on the XRPL and Ethereum, setting a precedent