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 alongside traditional banking rails, according to a pilot announcement by Ondo.
The pilot used Ondo Finance’s tokenized short-term U.S. government Treasury product, OUSG. Ripple redeemed part of its OUSG holdings on the XRP Ledger, while Mastercard’s Multi-Token Network sent settlement instructions to Kinexys via J.P. Morgan.
J.P. Morgan then moved the U.S. dollar proceeds to Ripple’s Singapore bank account through its correspondent banking network. Ondo said the asset leg on the XRP Ledger was processed in under five seconds.
Ondo Finance President Ian De Bode said, “This milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows.”
The firms said the transaction illustrates how tokenized assets can interface with banking systems without replacing them. In the pilot, one part of the flow occurred on a public blockchain, while the fiat component moved through banking infrastructure.
The companies also stated the setup could enable settlement outside normal banking hours, addressing constraints that can affect redemptions that rely on wire transfers, manual steps, and limited cut-off times.
Markus Infanger, SVP of RippleX, said the pilot demonstrated how institutions can execute cross-border transactions as “a single, integrated flow.” Mastercard’s Raj Dhamodharan said tokenized commerce is moving toward real-time use at scale.
The pilot arrives as major financial firms expand real-world asset tokenization efforts. Crypto.News reported that DTCC plans limited production trades of tokenized securities in July 2026, before targeting a full DTC tokenization service in October. The DTCC working group includes more than 50 firms from traditional finance and crypto, including BlackRock, Goldman Sachs, J.P. Morgan, Morgan Stanley, Circle, Ondo Finance, Ripple Prime, NYSE Group, Nasdaq, and Kraken’s parent company Payward.
Crypto.News also reported that tokenized U.S. Treasuries remain the largest real-world asset segment by market value. While tokenized public equities have grown faster, Treasury products continue to anchor the sector due to yield demand and market structure.
RWA.xyz data cited in the report showed tokenized real-world assets at $26.71 billion in distributed asset value, excluding stablecoins.
The pilot provides a live example of how public blockchains can work with regulated payment systems. Wider adoption, however, depends on legal clarity, risk controls, and rules for settlement finality.
The IMF, in an April note referenced in the article, said tokenized finance needs clear policy frameworks, safe settlement assets, strong code governance, legal certainty, and international coordination. It warned that weak safeguards could increase risks related to speed, concentration, and fragmented systems.
The article also cited remarks by Kevin O’Leary at Consensus Miami 2026, saying major capital may remain cautious until U.S. crypto market structure rules are passed and aligned with SEC standards. “When that occurs, it’s going to change everything,” he said.
