Using Ripple’s XRP Ledger and interbank settlement rails, JPMorgan and Mastercard have executed the first ever cross-border, cross-bank redemption of a tokenized US Treasury fund.
The US Ondo Short-Term US Government Treasuries (OUSG) fund was exchanged for Ripple on the XRP Ledger in the pilot transaction using the blockchain tokenization platform Ondo Finance. Settlement instructions were directed to JPMorgan’s Kinexys platform from Mastercard’s Multi-Token Network, which deposited US dollars into Ripple’s Singapore bank account.
First Cross-Border Redemption Using Blockchain Rails
Ondo Finance said on Wednesday that a historic first had been accomplished: the simultaneous settlement of a cross-border transaction involving a tokenized fund using a public blockchain and global banking infrastructure.
The pilot program is an example of the increasing cooperation between cryptocurrency companies and TradFi institutions in their shared goal of developing decentralized, global payment and settlement systems that operate outside of regular business hours.
The trial expands upon a pilot conducted by JPMorgan and Ondo Finance in May 2025, when a Treasury fund that had been tokenized was transferred across permissioned and public blockchains.
Stocks, bonds, money market funds, and even real estate might be tokenized in the future, according to Wall Street executives who are increasingly interested in the concept of real-world asset tokenization.
According to statistics from RWA.xyz, there are presently over $31.1 billion worth of real-world assets tokenized onchain, not including stablecoins. The tokenization market might reach a more cautious $2 trillion by 2030, according to McKinsey & Co., whereas Boston Consulting Group predicted in 2022 that it could soar to $16 trillion.
Launching a tokenization platform for instant settlement of stocks and exchange-traded funds using a blockchain post-trade system, the parent company of the New York Stock Exchange, Intercontinental Exchange, announced in January, was one of the most significant developments in the tokenization space so far.