XRP Ledger Challenges SWIFT with 24/7 Tokenized Treasuries

Ripple has taken a significant step toward integrating traditional finance with blockchain technology by tokenizing U.S. Treasuries and money market funds (MMFs) on the XRP Ledger (XRPL). This initiative, launched in partnership with DBS Bank and Franklin Templeton, positions the XRP Ledger as a decentralized platform for institutional-grade assets, leveraging its speed, low costs, and compliance-first design. The move marks a shift from XRP’s historical role in cross-border payments to a broader financial infrastructure roleXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3].

Tokenization enables real-world assets (RWAs) like U.S. Treasuries and MMFs to be represented as digital tokens on the XRPL. With over $26 trillion in U.S. Treasuries and $6 trillion in MMFs globally, these assets are among the safest and most liquid in the worldXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3]. By converting them into tokens, Ripple and its partners aim to streamline settlement times, reduce transaction costs, and enable 24/7 trading—advantages over traditional systems like SWIFT, which often require days for settlementsXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3]. The integration also includes Ripple’s stablecoin, RLUSD, which is backed by U.S. Treasuries and serves as a settlement asset for tokenized securitiesXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3].

The XRP Ledger’s architecture is a key enabler for this transition. It supports 1,500 transactions per second, with settlement times of 3–5 seconds and fees as low as fractions of a centXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3]. These features, combined with built-in compliance tools like decentralized identifiers (DIDs), make the ledger suitable for institutional use. Franklin Templeton, with $1.5 trillion in assets under management, and DBS Bank, Southeast Asia’s largest bank, are pivotal in validating the platform’s scalability and regulatory readinessXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3].

Institutional adoption is accelerating. Ondo Finance’s OUSG token, representing short-term U.S. government treasuries, is now live on the XRPL, allowing 24/7 minting and redemption using RLUSDTokenized U.S. Treasuries Are Now Live On XRP Ledger^[4]. This product, backed by BlackRock’s BUIDL fund, has surpassed $670 million in total value locked (TVL) and is among the largest tokenized treasury offeringsTokenized U.S. Treasuries Are Now Live On XRP Ledger^[4]. Ripple’s SVP Markus Infanger emphasized that tokenized assets like OUSG enable intraday settlements and capital efficiency, which traditional markets cannot match.

The market for tokenized treasuries is expanding rapidly. Total value locked in tokenized U.S. Treasuries now exceeds $7 billion, driven by adoption from firms like Ondo, BlackRock, and Franklin TempletonTokenized U.S. Treasuries Are Now Live On XRP Ledger^[4]. Analysts, including Boston Consulting Group (BCG), project that asset tokenization could grow to a $19 trillion market by 2033, with low-risk assets like treasuries leading adoptionTokenized U.S. Treasuries Are Now Live On XRP Ledger^[4]. The XRP Ledger’s compliance features and infrastructure, including upcoming support for Multi-Purpose Tokens (MPTs) and lending protocols, further solidify its position as a hub for institutional financeTokenized U.S. Treasuries Are Now Live On XRP Ledger^[4].

This development has broader implications for global finance. Tokenized treasuries offer institutions real-time liquidity management, reducing idle cash and improving capital efficiency. For example, corporations and governments can now redeploy funds instantly, bypassing traditional banking hours and fragmented settlement cycles. Ripple’s partnerships with regulated entities like DBS and Franklin Templeton also address concerns about regulatory compliance, a critical barrier for mainstream adoptionXRP and U.S. Treasury Bonds: A New Financial Frontier in 2025^[3].

While speculative scenarios, such as the U.S. government purchasing XRP to stabilize its price, remain unconfirmed, the growing institutional interest in XRP treasury strategies underscores its strategic valueXRP Ledger Disrupts Wall Street: Tokenized US Treasuries^[5]. Companies like Webus International and VivoPower International have allocated hundreds of millions to XRP treasuries, signaling a shift toward blockchain-based reservesXRP Ledger Disrupts Wall Street: Tokenized US Treasuries^[5]. As XRP’s price and infrastructure evolve, its role in bridging traditional finance and blockchain innovation continues to strengthenXRP Ledger Disrupts Wall Street: Tokenized US Treasuries^[5].