Overview
- Ondo Finance said Wednesday it completed a cross‑border, cross‑bank redemption of its OUSG tokenized U.S. Treasury fund with JPMorgan’s Kinexys, Mastercard and Ripple, with the XRP Ledger processing the asset leg in under five seconds.
- Mastercard’s Multi‑Token Network routed the payout instruction to Kinexys, which delivered U.S. dollars to Ripple’s bank account in Singapore through JPMorgan’s correspondent network outside normal banking hours.
- The pilot ran the asset move on a public blockchain and the cash move on bank rails in one coordinated flow, aiming to cut manual steps and wire delays that can stretch into days.
- Participants say the model could enable near‑real‑time, 24/7 settlement for institutional redemptions, though wider use will hinge on legal clarity about ownership and settlement finality and on consistent regulatory rules.
- The effort builds on prior tokenization tests and arrives as DTCC plans a tokenization service later this year and as JPMorgan reports more than $3 trillion processed on Kinexys, underscoring growing institutional work on real‑world asset rails.