Tokenization Is Coming to the XRP Ledger, as Ondo Finance Integrates Its OUSG Token

The Ondo Short-Term US Government Treasuries (OUSG) token, backed by BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), allows qualified investors to mint and redeem tokens almost instantly using Ripple's RLUSD stablecoin.

BlackRock’s institutional stablecoin, pegged to the U.S. dollar, is now available on the XRP Ledger (XRPL) for fast and efficient minting and redemption of tokenized U.S. Treasury products, thanks to a collaboration between Ondo Finance and Ripple.

Announced on Monday, Ondo Short-Term US Government Treasuries (OUSG) tokens can now be minted and burned using Ripple’s RLUSD stablecoin as a gateway asset on the XRPL. This integration enables qualified institutional investors to tokenize and detokenize U.S. Treasury instruments seamlessly.

According to a blog post by Ondo Finance, the deployment on XRPL is expected to go live within six months, pending regulatory approval. Both Ripple, a leading contributor to the XRP Ledger, and Ondo Finance have provided seed investments for initial liquidity on the XRPL.

The size of these allocations, however, will not be disclosed publicly to comply with SEC regulations regarding the promotion of digital assets, the announcement noted.

Related: XRP price could rally 20% if it manages to clear this crucial resistance

institutional stablecoin pegged to the U.S. dollar is now available on the XRP Ledger (XRPL) for fast and efficient minting and redemption of tokenized U.S. Treasury products, thanks to a collaboration between Ondo Finance and Ripple.

Announced on Monday, Ondo Short-Term US Government Treasties (OUSG) tokens can now be minted and burned using Ripple’s RLUSD stablecoin as a gateway asset on the XRPL. This integration enables qualified institutional investors to tokenize and detokenize U.S. Treasury instruments seamlessly.

According to a blog post by Ondo Finance, the deployment on XRPL is expected to go live within six months, pending regulatory approval. Both Ripple, a leading contributor to the XRP Ledger, and Ondo Finance have provided seed investments for initial liquidity on the XRPL.

The size of these allocations, however, will not be disclosed publicly to comply with SEC regulations regarding the promotion of digital assets, the announcement noted.

Following the announcement, ONDO, the governance token of Ondo Finance, rose by 4% on Monday.

The tokenization of real-world assets (RWA), such as bonds, credit instruments, and investment funds, is rapidly transforming finance. By representing these traditional assets on blockchain, participants benefit from faster settlement times and improved efficiency compared to conventional financial systems.

Tokenized U.S. Treasury products have been at the forefront of this trend, growing fourfold over the past year to form a $3.5 billion market, according to data from rwa.xyz.

“The 24/7 intraday settlement enabled by tokenized assets like OUSG represents a transformative shift in capital flow management, freeing transactions from traditional market hours and slow settlement processes,” said Markus Infanger, Senior Vice President of RippleX, Ripple’s XRPL-focused division. “These high-quality, low-risk liquidity solutions provide better accessibility for investors and bring greater stability to blockchain-based markets.”

The XRPL and OUSG: Institutional Finance In Harmony

The announcement is good news for Ripple and XRP, as the XRP Ledger (XRPL) is purpose-built to meet the demands of traditional financial institutions. With over a decade of experience facilitating cross-border payments, digital asset custody, and stablecoin issuance, the XRPL provides a robust and proven foundation for real-world asset (RWA) tokenization and institutional decentralized finance (DeFi).

Key XRPL features like advanced compliance tools, such as decentralized identifiers (DIDs) and price oracles, combined with forthcoming innovations like Multi-Purpose Tokens (MPTs) and Permissioned Domains, enhance its infrastructure. This positions the XRPL as an ideal platform for tokenized US Treasuries, seamlessly aligning with OUSG’s value proposition and reinforcing the XRPL as a cornerstone for institutional-grade financial solutions.

By integrating OUSG with the XRPL, Ondo Finance delivers institutional-grade assets directly to the institutions, offering wide onchain accessibility. This integration transforms how institutions interact with tokenized assets, enabling efficient treasury management, portfolio optimization, and access to high-quality yield—all within a secure and decentralized environment. The XRPL bridges DeFi and traditional finance, driving the adoption of tokenized assets and revolutionizing institutional financial management.

Brad Garlinghouse Advocates for a U.S. Digital Asset Reserve that Includes XRP

Meanwhile, more good news for XRP came this week, with Brad Garlinghouse, CEO of Ripple Labs, advocating for a U.S. digital asset reserve that includes a diverse range of tokens, rather than focusing solely on Bitcoin (BTC), XRP, or any single cryptocurrency.

“I own XRP, BTC, and ETH, along with a handful of others—we live in a multichain world,” Garlinghouse shared on Twitter. “I’ve always pushed for a level playing field, not a one-token-versus-another mindset. If a government digital