Ripple (XRP) Price Prepares to Rally as the Company Unveils Strategic Partnership With Ondo Finance to Tokenize U.S. Treasuries on XRPL

Ripple CEO Brad Garlinghouse has made waves in the crypto community by advocating for a diversified U.S. digital asset reserve rather than one centered solely on Bitcoin.

Ripple has announced a strategic partnership with Ondo Finance to launch the latter's tokenized U.S. Treasury product, OUSG, on the XRP Ledger (XRPL). This move comes as Ripple CEO Brad Garlinghouse continues to advocate for a diversified U.S. digital asset reserve, sparking debates within the crypto community.

According to a press release shared with Brave New Coin on March 8, Ripple has joined forces with Ondo Finance, a real-world asset tokenization firm, to integrate OUSG into the XRPL ecosystem. Backed by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), OUSG provides institutional investors with an efficient way to hold and redeem U.S. Treasuries around the clock.

With this integration, XRPL users will gain access to tokenized short-term U.S. Treasury securities, expanding the range of financial instruments available on the XRP Ledger. OUSG is already available on Ethereum, Polygon, and Solana, and its introduction to XRPL is expected to enhance liquidity in the network.

no institutional adoption, no crypto

Highlighting the growing adoption of tokenized assets, the press release notes that the market for tokenized U.S. Treasories has grown to $3.5 billion in the past year. This surge in institutional interest has paved the way for blockchain-based financial instruments to integrate into traditional finance systems.

“The 24/7 intraday settlement enabled by tokenized assets like OUSG marks a transformative shift in capital flow management, breaking free from traditional trading hours and slow settlements,” said Markus Infanger, Senior Vice President of RippleX.

“This capability, combined with the institutional-grade infrastructure of XRPL, sets the stage for a new era of capital markets on-chain.”

Echoing Infanger's sentiments, Katie Wheeler, Vice President of Partnerships at Ondo Finance, highlighted XRPL's institutional-grade infrastructure as a key reason for choosing the network.

“This integration is the natural convergence of a compliance-first, yield-bearing product with a network purpose-built for institutional adoption,” said Wheeler.

“Together, we're laying the groundwork for forward-thinking institutions to lead a new era of capital markets on-chain.”

Set to go live in the next six months, the deployment of OUSG on XRPL will see both Ripple and Ondo Finance commit seed investments to ensure initial liquidity in the market.

Diversifying the U.S. crypto reserve

In a separate development, Ripple CEO Brad Garlinghouse has pushed back against the idea of a Bitcoin-only reserve for the United States. Instead, he has argued for a diversified approach that includes multiple cryptocurrencies, such as XRP.

During an interview with Fortune on March 7, Garlinghouse addressed claims that he had lobbied against a Bitcoin strategic reserve, clarifying that he had spoken with key policymakers and officials. He emphasized the need for a more inclusive approach that reflects the broader crypto market rather than favoring one asset over all others.

“We live in a multichain world, and I've advocated for a level-playing field instead of one token versus another,” said Garlinghouse.

“If a government digital asset reserve is created, I believe it should be representative of the industry, not just one token—whether it be BTC, XRP, or anything else.”

However, Bitcoin maximalists, such as Pierre Rochard, have criticized Garlinghouse's stance, accusing him of attempting to position XRP as a preferred asset over Bitcoin. In response, Garlinghouse dismissed these criticisms, arguing that such perspectives are outdated and fail to acknowledge the evolving nature of blockchain ecosystems.

“Maximalism remains the enemy of crypto progress, and I'm very glad to see fewer and fewer folks ascribe to this outdated and misinformed thinking,” remarked Garlinghouse.

XRP's price outlook and potential rally

Following these announcements, XRP has experienced a modest uptick in price. The cryptocurrency is currently trading near $3.10, with an intraday high of $3.21 and a low of $3.02.

From a technical perspective, XRP is testing key resistance levels within a bullish pennant pattern. Analysts suggest that if XRP successfully breaks out above this resistance, it could target $3.55, a level not seen since 2018. Beyond that, a rally to $4.23 is possible, based on the height of the flag's pole projected from the breakout point.

XRP's bull flag on the 90-day chart. Source: Urbanmove on TradingView

On the other hand, failure to sustain bullish momentum could see XRP retest support levels at $2.90 or lower at $2.62. Market indicators such as the Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) remain above neutral levels, suggesting strong bullish sentiment. However, the Moving Average Convergence Diver