Ripple Connect XRP Ledger With Interbank Settlement Rails in Pilot Tokenized Treasuries Redemption

Key Insights

• Ripple, along with Ondo Finance, Mastercard, and JPMorgan, completed a pilot transaction to redeem tokenized US Treasuries.
• The XRP Ledger was connected to interbank settlement rails to execute transactions.
• Tokenization momentum is growing among financial institutions as Ripple seeks to boost XRPL adoption.

Ripple said it successfully connected the XRP Ledger (XRPL) with institutional settlement infrastructure during a pilot transaction involving tokenized U.S. Treasuries. The transaction included Ondo Finance, Mastercard, and JPMorgan’s Kinexys platform.

The pilot focused on redeeming Ondo Finance’s tokenized U.S. Treasury product, OUSG, through XRPL-linked settlement rails. Ripple described the transaction as an early step toward enabling continuous cross-border financial markets outside traditional banking hours.

Ripple, Ondo Finance, and JPMorgan Complete XRPL Treasury Pilot

The pilot transaction involved the redemption of Ondo Short-Term U.S. Government Bond (OUSG), a tokenized Treasury product issued by Ondo Finance across multiple blockchain networks, including XRPL.

Ripple initiated the redemption request directly through the XRP Ledger. Ondo Finance then processed the request through Mastercard’s Multi-Token Network, which routed payment instructions to Kinexys, JPMorgan’s blockchain-based settlement platform.

JPMorgan later settled the transaction in U.S. dollars into Ripple’s Singapore-based bank account.

According to Ondo Finance, the entire process occurred in real time and outside normal banking hours.

Source: X

The transaction marked one of the first known cases where a public blockchain interacted directly with institutional banking settlement infrastructure for cross-border tokenized Treasury redemption.

Ripple said the pilot demonstrated how blockchain-based assets could interact with existing financial rails while reducing settlement delays.

Tokenization Momentum Heats Up Among Institutions

The pilot transaction highlights the strong interest in tokenization across traditional institutions and blockchain-focused firms. Over the past few years, several financial institutions have highlighted the potential of tokenization as the next frontier.

For many stakeholders, tokenization is what will finally enable the global financial markets to operate 24/7. The entire tokenized asset class currently has a market cap of $31 billion, with US treasuries accounting for almost 50%.

However, there have been increasing efforts to also tokenize equities, with leading stock exchanges such as Nasdaq and NYSE having such plans.

Crypto exchanges are also aiming to get in on the action. Tokenized equity is already trading on exchanges such as Kraken, while Coinbase and Bullish recently inked major deals to improve their tokenization stack.

Coinbase disclosed that it has invested in Centrifuge and will use its tokenization infrastructure. The exchange is planning to issue tokenized assets in the coming weeks.

Meanwhile, US regulators have also been permissive of pilot tokenization plans despite concerns from some stakeholders. Depository Trust & Clearing Corporation (DTCC) said it will roll out the initial stages of its tokenization service in July 2026, with a full launch in October.

Over 50 companies, including brokerage firms, exchanges, banks, and asset managers, will participate in the rollout.

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