Ondo Finance Expands Tokenized U.S. Treasuries Fund to Ripple’s XRP Ledger

Ondo Finance, a decentralized finance platform backed by Founders Fund and Pantera Capital, announced its plans to expand its tokenized U.S. Treasuries fund, the Ondo Short-Term U.S. Government Treasuries Fund (OUSG), to Ripple’s layer-1 blockchain, XRP Ledger.

Partnership with Ripple

Ondo Finance is partnering with Ripple, the creator of XRP, to bring the institutional-grade product to the XRP Ledger. The expansion aims to bolster institutional adoption of compliance-focused decentralized finance products, targeting investors seeking DeFi yields while benefiting from tokenization and composability.

OUSG is backed by BlackRock’s U.S. Treasuries fund, the USD Institutional Digital Liquidity Fund (BUIDL). By bringing OUSG to the XRPL, Ondo Finance aims to provide broad on-chain accessibility and change how institutions interact with tokenized assets as flexible treasury management tools.

By bringing OUSG to the XRPL, Ondo Finance is bringing institutional-grade assets directly to the institutions, providing broad onchain accessibility, and changing how institutions interact with tokenized assets as flexible treasury management tools.

Accelerating Tokenization and Adoption

Ripple and Ondo Finance have secured commitments to seed the tokenized fund’s liquidity at launch. The goal is to leverage this liquidity to accelerate tokenization and adoption of real-world assets (RWAs) within the XRPL ecosystem. The 24/7 support for minting and redemption of OUSG will further aid this effort.

Ripple also plans to integrate its stablecoin RLUSD with OUSG on XRP Ledger, enabling interoperability and instant redemption.

Growing Market for Tokenized RWAs

Tokenized real-world assets have seen significant growth over the past year, with major issuers like BlackRock, Franklin Templeton, and Hashnote playing a key role. Ondo’s products add to a market that currently stands at over $3.5 billion.

Some key benefits of tokenized RWAs include:

  • Increased liquidity: Tokenized RWAs can be traded on various platforms, increasing their liquidity and accessibility.
  • Improved transparency: Tokenized RWAs provide real-time tracking and monitoring, improving transparency and reducing the risk of fraud.
  • Reduced costs: Tokenized RWAs can reduce the costs associated with traditional asset management, such as custody and settlement fees.

Ondo’s move to bring OUSG to Ripple’s ecosystem comes a few months after Ripple announced plans to allocate up to $10 million into tokenized U.S. Treasuries on XRPL.

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