KEY TAKEAWAYS
- Ondo Finance introduces tokenized U.S. Treasuries to the XRP Ledger, enhancing onchain institutional-grade product offerings.
- Ripple and Ondo Finance secure liquidity commitments to promote the adoption of tokenized real-world assets on the XRPL.
- The demand for tokenized U.S. Treasuries is driven by institutional interest, with the market projected to reach $16 trillion by 2030.
- OUSG offers institutional investors high-quality liquidity solutions, backed by U.S. Treasuries and supported by XRPL’s compliance features.
San Francisco, CA–January 28, 2025–Ondo Finance, a prominent issuer of tokenized real-world assets (RWA), has announced the introduction of tokenized U.S. Treasuries to the XRP Ledger (XRPL). This initiative aims to broaden the range of institutional-grade products available onchain. Institutional investors will now have access to Ondo Short-Term U.S. Government Treasuries (OUSG), which are backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). These can be minted and redeemed instantly around the clock using Ripple USD (RLUSD), a stablecoin denominated in USD.
Ripple and Ondo Finance have secured commitments to seed liquidity for OUSG upon its initial deployment, promoting the adoption of tokenized RWAs on the XRPL. This move builds on Ripple’s previous investments in tokenized U.S. Treasuries, such as its initial investment in OpenEden’s TBILL.
Institutional Demand Drives Growth
The demand for tokenized U.S. Treasuries like OUSG has surged, driven by institutional interest in liquidity, efficiency, and transparency within capital markets. The market for tokenized assets is projected to grow significantly, with forecasts suggesting it could reach $16 trillion by 2030. The XRPL is well-positioned to facilitate the onchain transition of traditional financial assets, offering enhanced security, verifiable trust, and new revenue opportunities.
By integrating OUSG into the XRPL, Ondo Finance addresses the growing demand for onchain solutions. OUSG provides institutional-grade security, backed by short-term U.S. Treasuries and managed with strict KYC and AML compliance. The XRPL’s native compliance features, such as Decentralized Identifiers (DIDs) and onchain credential management, further support regulatory adherence.
Enhanced Liquidity and Security
OUSG and RLUSD offer institutional investors high-quality, low-risk liquidity solutions, facilitating efficient portfolio management and greater access to tokenized U.S. Treasuries. The XRPL’s scalable decentralized blockchain technology, characterized by high throughput, low fees, and reliability, enables seamless tokenization and trading of RWAs.
Markus Infanger, Senior Vice President at RippleX, noted that the 24/7 intraday settlement enabled by tokenized assets like OUSG represents a transformative shift in capital flow management. This innovation supports broader DeFi adoption and positions the XRPL as a cornerstone for institutional-grade financial solutions.
Katie Wheeler, Vice President of Partnerships at Ondo Finance, emphasized the significance of bringing OUSG to the XRP Ledger, highlighting its compliance-first, yield-bearing nature and its alignment with a network designed for institutional adoption.
Ondo Finance has achieved a milestone as the first tokenized U.S. Treasuries platform to surpass $600 million in total value locked (TVL). OUSG offers qualified investors instant 24/7 subscriptions and redemptions, daily interest accruals, low fees, and multi-chain availability.
The XRP Ledger is tailored to meet the needs of traditional financial institutions, offering features like tokenization, trading, escrow, compliance, and seamless asset movement. Ripple has utilized the XRPL for over a decade to facilitate cross-border payments, digital asset custody, and stablecoin issuance, continually expanding its capabilities.
For more information, visit the official announcement here.
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