Tokenized Treasuries Transition from Theory to Practice with OUSG Launch

Ripple and Ondo Finance have launched Ondo Short-Term U.S. Government Treasuries (OUSG) on the XRP Ledger (XRPL), marking a significant advancement in tokenized finance. This move enables institutional access to tokenized treasuries via seamless minting and redemptions using Ripple’s RLUSD stablecoin, a first-of-its-kind solution on the XRPL. OUSG, which has amassed over $670 million in total value locked (TVL), now offers Qualified Purchasers round-the-clock access to U.S. Treasury securities, leveraging the XRPL’s compliance-first infrastructure and low-cost, fast-finality settlement capabilities .

The deployment of OUSG on XRPL underscores the growing adoption of tokenized real-world assets (RWAs). Tokenized U.S. Treasuries now exceed $7 billion in TVL, driven by products like OUSG and offerings from BlackRock and Franklin Templeton. Ripple’s SVP of RippleX, Markus Infanger, emphasized that the initiative demonstrates tokenized finance’s transition from theory to practice, enabling institutions to access high-quality assets on public blockchains with compliance and efficiency. The integration of RLUSD as a stable settlement asset further enhances liquidity and cross-market utility, supported by liquidity commitments from both Ripple and Ondo .

XRPL’s architecture is positioned as a strategic platform for institutional-grade tokenization. The ledger’s native tokenization support, built-in decentralized exchange (DEX), and features like Decentralized Identifiers (DIDs) align with institutional requirements for compliance and operational efficiency. According to a Ripple and Boston Consulting Group (BCG) report, low-risk, high-utility assets like treasuries are leading tokenization adoption, particularly when paired with scalable infrastructure and compliant on/off ramps. XRPL’s upcoming support for Multi-Purpose Tokens (MPTs) and a lending protocol further solidifies its appeal for institutional use cases .

The OUSG launch highlights the operational advantages of tokenized treasuries. Traditional capital markets often face challenges with fragmented settlement cycles and idle cash buffers. By tokenizing treasuries on XRPL, institutions can achieve near-instant redeployment of funds, maintain compliance, and enhance liquidity management across jurisdictions. The 24/7 accessibility and programmability of tokenized assets also open new possibilities for collateral optimization and cash flow efficiency .

Market analysts view this development as a pivotal milestone for tokenization. U.S. Treasuries have shown strong product-market fit in the RWA space, with their adoption accelerating faster than other asset classes. The integration of OUSG on XRPL not only expands access to institutional-grade assets but also reinforces the ledger’s role as a hub for compliant, high-efficiency tokenized finance. As tokenization becomes a cornerstone of modern financial infrastructure, the collaboration between Ripple and Ondo sets a precedent for future innovations in asset digitization .

The broader implications for the financial ecosystem are significant. Tokenized treasuries, now exceeding $7 billion in TVL, exemplify how blockchain can enhance capital efficiency while retaining programmability and interoperability with onchain finance. This shift aligns with BCG’s projection that asset tokenization could create a $19 trillion market by 2033, driven by scalable infrastructure and institutional adoption .

[1] Tokenized Treasuries Go Live on the XRPL | Ripple (https://ripple.com/insights/tokenized-treasuries-go-live-on-the-xrpl/)

[2] Ripple Taps Ondo to Bring Tokenized U.S. Treasuries to the XRP Ledger (https://cryptodaily.co.uk/2025/09/ripple-taps-ondo-to-bring-tokenized-us-treasuries-to-the-xrpl-ledger-opening-a-new-chapter-for-defi)