Ondo, JPMorgan, Mastercard and Ripple complete tokenized Treasury settlement on XRP Ledger

JPMorgan Chase (JPM), Mastercard (MA), Ripple, and Ondo Finance completed a tokenized U.S. Treasury redemption that joined the XRP Ledger with bank settlement rails across borders.

Ondo said the test was the first near real-time, cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. The setup gave institutions a working path for 24/7 tokenized asset redemptions, with blockchain activity on one side and bank payments on the other.

The deal used OUSG, Ondo’s tokenized short-term U.S. government Treasuries product. Ripple redeemed part of its OUSG holdings on XRPL, a public blockchain. Ondo handled the redemption, then sent the cash payout order through Mastercard’s Multi-Token Network, known as MTN.

Kinexys by J.P. Morgan received that order on its blockchain system, debited Ondo’s Blockchain Deposit Account, and sent U.S. dollars to Ripple’s bank account in Singapore through J.P. Morgan’s correspondent banking network.

Ripple uses XRP Ledger while Mastercard sends cash instruction to Kinexys

The transaction had two parts. The tokenized Treasury redemption happened on the XRP Ledger. The dollar settlement happened through bank infrastructure.

That split is the whole point here, because tokenized assets often look fast onchain, then hit a wall when cash settlement still depends on wires, staff checks, and banking hours.

Mastercard’s MTN sat between those two worlds. The network carried the fiat payout instruction from Ondo to Kinexys by J.P. Morgan.

Mastercard describes MTN as a system that lets different types of value work together and gives traditional financial firms a way to handle onchain commerce without pretending banks no longer exist. That is not flashy crypto theater. It is plumbing. But plumbing is exactly where tokenized finance either works or falls apart.

Ondo said the redemption was completed near real time and outside normal banking cut-off windows. That matters because old settlement rails still run on schedules that do not match crypto markets. 

XRP trades all day, tokenized assets can sit on public chains all day, but cash payout systems can still act like everyone went home at 5 p.m. This pilot tested a structure where the blockchain side and the bank side followed one coordinated process instead of two separate instructions.

Ian De Bode, president of Ondo Finance, 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.” Ian also said Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple were connecting public blockchain infrastructure with interbank settlement rails for markets that can run 24/7.

Kinexys settles the dollar leg after Ondo processes the tokenized Treasury redemption

Kinexys by J.P. Morgan handled the dollar side after Ondo completed the OUSG redemption. The platform debited Ondo’s Blockchain Deposit Account, then supported the next instruction through J.P. Morgan’s correspondent banking network. The final payout reached Ripple’s Singapore bank account in U.S. dollars.

Ondo said tokenized real-world assets have expanded, but redemption systems still rely too much on wire payments, manual work, and limited opening hours.

This test used blockchain infrastructure to trigger the cash payout instead of making the payment side start from an isolated traditional system. The result was one connected transaction path, with XRPL handling the tokenized asset leg and banking rails handling the fiat leg.

Markus Infanger, SVP of RippleX, said, “The XRP Ledger enables real-time asset movement, and when paired with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions as a single, integrated flow.”

Markus also said the test showed tokenized assets can connect public blockchain systems with the global financial network.

Zack Chestnut, global head of commercialization at Kinexys by J.P. Morgan, said the pilot was a step toward institutional-scale tokenized asset markets. Zack said wider adoption will need banks, public blockchains, and firms in different regions to work together.

Ondo said the same architecture can support redemptions from any public blockchain where OUSG is issued, including XRPL.

Your bank is using your money. You’re getting the scraps. Watch our free video on becoming your own bank