Four major financial firms — JPMorgan, Mastercard, Ripple, and Ondo Finance — completed a pilot this week that settled a tokenized US Treasury redemption across banks and borders in near real time. The transaction moved Ripple's redemption of Ondo Short-Term US Government Treasuries (OUSG) tokens on the XRP Ledger, routed through Mastercard's Multi-Token Network and JPMorgan's Kinexys platform, and ended with dollars hitting Ripple's Singapore bank account. It's a step toward 24/7 global financial markets.
How the pilot worked
Ondo Finance processed the redemption on the XRP Ledger, a public blockchain. Mastercard's Multi-Token Network forwarded settlement instructions to Kinexys, JPMorgan's blockchain-based platform. JPMorgan then sent US dollars to Ripple's Singapore bank account through the traditional banking system. The dollar leg moved through conventional channels rather than fully on-chain — a hybrid design that lets institutions use blockchain rails while keeping fiat flows inside regulated channels.
The four firms called the test the first time tokenized assets settled across borders and banks in near real time outside conventional banking hours. OUSG ranks among the largest tokenized Treasury products and arrived on the XRP Ledger earlier to widen institutional access. Tokenized US Treasuries account for roughly $15 billion of outstanding value, according to RWA.xyz — a small share of the $30 trillion Treasury market, but expanding sharply since 2024. 'This pilot is an important step towards establishing a framework for institutional-scale tokenized asset markets,' said Zack Chestnut, head of commercial at Kinexys by J.P. Morgan.
What comes next
DTCC will launch a tokenization service in October, with Treasury bills and bonds among eligible assets. Nasdaq is preparing for tokenized stock and exchange-traded fund trading. JPMorgan has already deployed Kinexys for foreign-exchange settlement, deposit tokens, and corporate-dollar transfers. Ripple has built the XRP Ledger with permissioned domains and zero-knowledge tooling for regulated users. The hybrid design in this pilot — blockchain for token assets, traditional banking for dollars — could become a template as more institutions test round-the-clock settlement.
