Ondo Finance, Kinexys by J.P. Morgan, Mastercard, and Ripple have successfully completed a pilot transaction that linked tokenized US Treasuries on the XRP Ledger with interbank settlement infrastructure.
This marks the first time tokenized US Treasuries have settled across borders and banks in near real time.
The transaction involved Ripple redeeming a portion of its Ondo Short Term US Government Treasuries holdings on XRPL. Ondo processed the redemption and sent the fiat payout instruction through Mastercard’s Multi Token Network, which routed it to Kinexys by J.P. Morgan. Kinexys debited Ondo’s blockchain deposit account and delivered USD proceeds to Ripple’s bank account in Singapore through J.P. Morgan’s correspondent banking network.
The companies said the pilot marked the first near real time, cross border and cross bank redemption of a tokenized US Treasury fund outside traditional banking windows. The transaction shows how tokenized assets can interact with public blockchain rails and traditional bank settlement systems in a single flow.