Ondo Finance completes pilot redemption of tokenised US Treasury fund
07 May 2026 US
Image: TheFotos/stock.adobe.com
Ondo Finance, a DeFi platform focused on tokenising real-world assets, has completed a near-real-time, cross-border, cross-bank redemption of a tokenised US Treasury fund.
The initiative was conducted in collaboration with Kinexys by J.P. Morgan, Mastercard, and Ripple.
The pilot saw Ripple redeem a portion of its Ondo Short-term US Government Treasuries (OUSG) holdings on the XRP Ledger (XRPL), a public blockchain.
The associated fiat settlement was triggered via the Mastercard Multi-Token Network (MTN), which enables interoperability between different types of value, allowing TradFi institutions to interact with onchain commerce.
Fiat settlement execution was initiated on Kinexys by J.P. Morgan’s blockchain infrastructure, which also supported onward instruction to the firm’s correspondent banking network for the cross-border delivery of funds.
The culmination of redemption type, execution time, execution outside traditional cut-off windows, and the cross-border transfer of funds on blockchain infrastructure is said to make the programme the first of its kind between global financial institutions.
Speaking on the pilot, Ian De Bode, president of Ondo Finance, says: “This milestone represents the first time tokenised U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows.”
Markus Infanger, senior vice president of RippleX, comments: “This marks a meaningful step forward in demonstrating that tokenised assets can move seamlessly between public blockchain infrastructure and the global financial system.”
Zack Chestnut, global head of commercialisation at Kinexys by J.P. Morgan, remarks: “This pilot is an important step towards establishing a framework for institutional-scale tokenised asset markets.
“To see widespread adoption of tokenised financial products, we need wholesale cross-industry collaboration across geographies, global banking infrastructure and public blockchains.”
The initiative was conducted in collaboration with Kinexys by J.P. Morgan, Mastercard, and Ripple.
The pilot saw Ripple redeem a portion of its Ondo Short-term US Government Treasuries (OUSG) holdings on the XRP Ledger (XRPL), a public blockchain.
The associated fiat settlement was triggered via the Mastercard Multi-Token Network (MTN), which enables interoperability between different types of value, allowing TradFi institutions to interact with onchain commerce.
Fiat settlement execution was initiated on Kinexys by J.P. Morgan’s blockchain infrastructure, which also supported onward instruction to the firm’s correspondent banking network for the cross-border delivery of funds.
The culmination of redemption type, execution time, execution outside traditional cut-off windows, and the cross-border transfer of funds on blockchain infrastructure is said to make the programme the first of its kind between global financial institutions.
Speaking on the pilot, Ian De Bode, president of Ondo Finance, says: “This milestone represents the first time tokenised U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows.”
Markus Infanger, senior vice president of RippleX, comments: “This marks a meaningful step forward in demonstrating that tokenised assets can move seamlessly between public blockchain infrastructure and the global financial system.”
Zack Chestnut, global head of commercialisation at Kinexys by J.P. Morgan, remarks: “This pilot is an important step towards establishing a framework for institutional-scale tokenised asset markets.
“To see widespread adoption of tokenised financial products, we need wholesale cross-industry collaboration across geographies, global banking infrastructure and public blockchains.”
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