Ondo Finance’s tokenized U.S. Treasury product, Ondo Short-Term U.S. Government Treasuries (OUSG), is now live on the XRP Ledger, marking a significant step in the integration of real-world assets into blockchain infrastructure.
The launch allows institutional investors, classified as Qualified Purchasers, to subscribe to and redeem OUSG directly on the XRP Ledger using Ripple’s enterprise-focused stablecoin, RLUSD. This provides around-the-clock access to tokenized U.S. Treasuries without relying on traditional banking hours or infrastructure.
Growing Institutional Use of Tokenized Assets
OUSG, introduced as one of the first tokenized securities to gain traction, holds over $670 million in total value locked. Ondo Finance’s overall platform has surpassed $1.3 billion in TVL, according to the company.
By enabling settlement via RLUSD, the new deployment facilitates a streamlined liquidity process for institutions managing short-term cash and collateral. Ripple and Ondo Finance have committed to initial liquidity support for the OUSG product on XRPL.
The XRP Ledger, known for its low-cost transactions and fast settlement times, offers built-in support for tokenization and decentralized trading. Features such as decentralized identifiers (DIDs) and compliance frameworks are also in place to meet regulatory requirements for institutional finance.
Tokenization Gains Momentum Across Financial Sector
The move reflects broader momentum in tokenization, particularly with U.S. Treasuries emerging as a leading use case for digital asset infrastructure. A joint report from Ripple and Boston Consulting Group estimates tokenized assets could reach a market size of $19 trillion by 2033, with low-risk instruments like Treasuries driving early adoption.
The inclusion of OUSG on XRPL follows similar efforts by other asset managers to bring real-world financial products on-chain. Industry observers suggest this trend could reshape how liquidity and capital efficiency are managed across borders.
Ripple’s senior vice president of products, Markus Infanger, stated that the development underscores a shift from theoretical models to operational products in tokenized finance.
As institutions explore blockchain-based tools for asset management, the availability of government-backed securities on public ledgers signals a turning point in the maturity of decentralized financial infrastructure.
