Ripple, JPMorgan & Mastercard Pull Off First Tokenized Treasury Deal

JPMorgan, Mastercard, Ripple, and Ondo Finance completed a pilot that settled a tokenized US Treasury redemption across banks and borders in near real time, the firms said.

The transaction routed Ripple’s redemption of Ondo Short-Term US Government Treasuries (OUSG) tokens on the XRP Ledger through Mastercard’s Multi-Token Network and JPMorgan’s Kinexys platform, which delivered dollars to Ripple’s Singapore bank account.

How Ripple Connected Blockchain to Bank Settlement

Ondo Finance processed Ripple’s OUSG redemption on the XRP Ledger, a public blockchain. Mastercard’s Multi-Token Network forwarded the settlement instructions to Kinexys, JPMorgan’s blockchain unit. JPMorgan then sent the corresponding US dollars to Ripple’s bank account in Singapore.

The dollar leg moved through the traditional banking system rather than fully on-chain. That hybrid design allows institutions to tap blockchain rails while keeping fiat flows inside regulated channels.

The four firms framed the test as the first time tokenized assets settled across borders and banks in near real time outside conventional banking hours. OUSG ranks among the largest tokenized Treasury products and arrived on the XRP Ledger earlier this cycle to widen institutional access.

“This pilot is an important step towards establishing a framework for institutional-scale tokenized asset markets.”

Zack Chestnut, head of commercial at Kinexys by J.P. Morgan, said in a statement.

A Wider Tokenization Push

Tokenized US Treasuries account for roughly $15 billion of outstanding value, according to RWA.xyz. That figure is small compared with the $30 trillion Treasury market, but has expanded sharply since 2024 as banks and asset managers tested settlement on public chains.

Major firms keep adding infrastructure. The Depository Trust and Clearing Corporation said this week it will launch a tokenization service in October, with Treasury bills and bonds among the eligible assets. Nasdaq is preparing for tokenized stock and exchange-traded fund (ETF) trading.

For JPMorgan, the redemption follows a string of Kinexys deployments covering foreign-exchange settlement, deposit tokens, and corporate-dollar transfers. Ripple has built the XRP Ledger with permissioned domains and zero-knowledge tooling for regulated users.