XRP News Today: Ondo Finance Launches Tokenized US Treasury Product on XRP Ledger with $30 Million TVL

Ondo Finance has launched its flagship tokenized US Treasury product, Ondo Short-Term US Government Treasuries (OUSG), on the XRP Ledger (XRPL). This move allows institutional investors on the XRPL to access OUSG, providing exposure to short-term US Treasuries through a fully tokenized, blockchain-based offering. Ondo Finance emphasizes that this launch brings institutional-grade assets directly to institutions, offering high-quality tokenized assets as flexible treasury management tools.

OUSG's debut on the XRPL is backed by an impressive $30 million in total value locked (TVL). This expansion not only broadens OUSG’s multi-chain reach, which already includes Ethereum and Solana, but also positions the XRPL as a hub for institutional-grade finance solutions. The integration allows for intraday settlement and immediate access to liquidity, addressing long-standing inefficiencies in traditional finance. With over $1.3 billion in TVL, Ondo Finance has established itself as a leader in real-world asset (RWA) tokenization. OUSG alone holds over $690 million and was the first tokenized security to achieve significant adoption. Its portfolio includes funds managed by financial heavyweights like BlackRock, Franklin Templeton, WisdomTree, and FundBridge Capital.

Ian De Bode, Chief Strategy Officer at Ondo Finance, highlighted that bringing OUSG to the XRPL with RLUSD as a settlement option broadens access to high-quality, on-chain financial instruments. This reflects Ondo Finance's commitment to bridging traditional finance and decentralized finance (DeFi) in a way that serves institutions reliably.

Ripple's RLUSD stablecoin has become a gateway to US Treasuries with the launch of Ondo Finance's tokenized US Treasury fund, Ondo Short-Term US Government Treasuries (OUSG), on the XRP Ledger (XRPL). This development allows institutional investors on the XRPL to access OUSG, providing exposure to short-term US Treasuries through a fully tokenized, blockchain-based system. The fund, which already commands over $670 million in total value locked, is now available for minting or redemption around the clock using RLUSD, Ripple’s enterprise-grade stablecoin. This integration effectively links BlackRock-custodied Treasury bills to a 24/7 public chain and its native decentralized exchange.

The process for institutional investors to create or redeem OUSG is streamlined, involving a single transaction where RLUSD is delivered or received. RLUSD settles natively on the XRPL within three to five seconds, bypassing traditional cutoff times and bank wires. Ripple and Ondo have committed liquidity to ensure smooth market-making for both RLUSD ↔ USD off-chain and RLUSD ↔ OUSG on-chain, allowing investors to scale in or out without slipping on spreads. The entire flow remains permissioned at the edges and permissionless in the core, with Qualified Purchasers authenticating through Ondo’s compliance portal and interacting with the built-in DEX like any other asset pair. Settlement is atomic, with OUSG units burning or minting the moment RLUSD transfers, eliminating the daylight-risk gap that plagues traditional T-plus settlement cycles.

XRPL’s deterministic order book, low fees, and native token-issuance primitives eliminate the need for smart-contract wrappers for basic custody logic. Forthcoming Multi-Purpose Tokens (MPTs) will allow OUSG to embed cash-flow rights and compliance fences at the protocol level. The planned lending protocol will enable desks to rehypothecate OUSG as repo collateral without bridging to another chain. Permissioned Domains will give asset managers namespace-level control over who trades within walled gardens, a prerequisite for regulated liquidity pools.

For treasury teams managing intraday cash buffers, tokenized bills on XRPL unlock immediate redeployment of idle dollars. A fund manager redeeming OUSG at 21:00 ET on a Friday can receive RLUSD within seconds and cycle into overnight reverse-repo, stablecoin liquidity farming, or FX settlement in Asia before traditional markets open. Conversely, corporates sweeping surplus RLUSD into OUSG every evening can capture US Treasury yield without operational drag.

Markus Infanger, SVP of RippleX, highlighted the significance of this launch, stating that it demonstrates the maturation of tokenized finance in real markets. Institutions can now access high-quality assets like US Treasuries on public blockchains with the compliance and efficiency they need. This progress brings trusted financial assets into a 24/7 market, enabling greater liquidity, operational efficiency, and faster access to capital.

The immediate roadmap includes opening a secondary RLUSD-OUSG order book on XRPL’s DEX, integrating OUSG as collateral in XRPL-based lending markets once live, and extending mint-and-burn access to additional Qualified Purchaser jurisdictions as regulators sign off on the identity stack. Longer term, Ripple plans to use RLUSD as the hub currency for other real-world assets, starting with commercial paper and municipal notes, turning XRPL into a full-spectrum capital-markets substrate.