Ondo Finance to Launch $185 Million U.S. Treasury-Backed Token on Ripple’s XRP Ledger (XRPL)

The tokenization of real-world assets, including bonds, credit instruments, and investment funds, has seen explosive growth

Ondo Finance, a platform specializing in the tokenization of real-world assets, is set to launch its $185 million U.S. Treasury-backed token on Ripple’s XRP Ledger (XRPL). The move will enhance institutional access to tokenized assets through the enterprise-focused blockchain.

The Ondo Short-Term US Government Treasuries (OUSG) token, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), will allow qualified investors to mint and redeem tokens almost instantly using Ripple’s RLUSD stablecoin. The deployment on XRPL is expected to go live within six months, according to a blog post by Ondo Finance.

Both Ripple and Ondo Finance have committed seed investments to provide liquidity for the XRPL integration, although the size of the allocations is not disclosed. Following the announcement, Ondo Finance’s governance token, ONDO, rose by 4%.

The tokenization of real-world assets, such as bonds, credit instruments, and investment funds, has seen explosive growth, with the market for tokenized U.S. Treasury products increasing fourfold over the past year to $3.5 billion, according to data from rwa.xyz. These assets offer faster settlement times and greater efficiency compared to traditional financial systems.

"The 24/7 intraday settlement enabled by assets like OUSG represents a paradigm shift in capital flow management, untethering transactions from traditional market hours and slow settlement processes," said Markus Infanger, Senior Vice President of RippleX, highlighting the transformative potential of tokenized assets.

"Such solutions provide high-quality liquidity while improving accessibility for institutional investors. We're excited to see this integration come to life and continue enabling real-world use cases for XRP."

The XRP Ledger, with over a decade of experience supporting cross-border payments, digital asset custody, and stablecoin issuance, is well-suited to real-world asset tokenization and institutional decentralised finance (DeFi).

Enhanced by compliance tools and upcoming innovations like Multi-Purpose Tokens (MPTs) and Permissioned Domains, the XRPL is positioned to become a cornerstone for institutional-grade financial solutions.

This integration marks a significant step for Ripple in bridging traditional finance with blockchain-based systems. Institutions will gain access to efficient treasury management and high-quality yield opportunities within a secure, decentralised framework, further advancing the adoption of tokenized assets.