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Ondo, JPMorgan, Mastercard and Ripple Complete Tokenized Treasury Pilot on XRP Ledger

The trial points to round-the-clock settlement by letting a blockchain redemption trigger cash delivery through bank rails.

Overview

  • The consortium, which disclosed the pilot Wednesday, completed what it called the first cross-border, cross-bank redemption of tokenized U.S. Treasuries.
  • Ripple redeemed Ondo’s OUSG on the XRP Ledger, with the on-chain step finalizing in under five seconds outside normal banking hours.
  • Mastercard’s Multi-Token Network turned the on-chain redemption into payment instructions that JPMorgan’s Kinexys used to deliver U.S. dollars to Ripple’s bank account in Singapore.
  • OUSG is a token that represents short-term U.S. Treasury holdings and is limited to accredited investors, giving institutions a way to move fund shares on a public blockchain.
  • Large-market plumbing is taking shape as JPMorgan says Kinexys has processed more than $3 trillion to date and DTCC plans a tokenization service later this year.