Ondo Finance Expands Tokenized U.S. Treasury Offerings on XRP Ledger
Ondo Finance, a pioneering platform in tokenized real-world assets, is set to enhance its offerings by introducing the $185 million U.S. Treasury token on the enterprise-focused XRP Ledger network. This strategic move aims to provide institutions with greater access to innovative financial solutions, as confirmed by both companies in a recent announcement.
The Ondo Short-Term U.S. Government Treasuries (OUSG) token is uniquely backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). This allows qualified investors to mint and redeem tokens swiftly and around the clock, utilizing Ripple’s RLUSD stablecoin for seamless transactions. Ondo Finance indicated that this deployment is anticipated to go live within the next six months, as detailed in a blog post.
In a collaborative effort, both Ripple, the developer of the XRP Ledger, and Ondo Finance have committed seed investments to establish initial liquidity for the token on this blockchain. However, the specific amounts of these allocations have not been disclosed.
The tokenization of real-world assets (RWA) is an industry that is rapidly gaining momentum, representing traditional finance assets such as bonds, credits, and funds on blockchain networks. This transformation is driven by the desire for faster settlements and enhanced efficiency compared to conventional banking systems.
Tokenized versions of U.S. Treasury notes have led this trend, experiencing significant growth over the past year, which has seen their market size exceed $3.5 billion, according to data from rwa.xyz. As Markus Infanger, a senior vice president at RippleX, remarked, “The 24/7 intraday settlement enabled by tokenized assets like OUSG marks a transformative shift in capital flow management. This innovation allows participants to break free from the constraints of traditional trading hours and slow settlement processes. These low-risk, high-quality liquidity options not only enhance accessibility for investors but also contribute to greater stability in blockchain-based markets.”
With OUSG, Ondo Finance joins OpenEden’s TBILL as one of the few tokenized treasury products available on the XRP Ledger. Previously, OUSG was accessible on other prominent platforms, including Ethereum, Polygon, and Solana, showcasing its versatility and appeal in the evolving digital asset landscape.
