JPMorgan, Mastercard, Ripple, and Ondo Finance completed a pilot that implemented the redemption of US Treasurys across banks and borders in near real time, the companies said.
The transaction triggered Ripple’s redemption of Ondo Short-Term US Government Treasuries (OUSG) on the XRP Ledger through Mastercard’s Multi-Token Network and JPMorgan’s Kinexys platform, which transferred dollars to Ripple’s Singapore bank account.
How Ripple Connected Blockchain to Bank Settlement
Ondo Finance arranged Ripple’s OUSG redemption on The price of XRPpublic blockchain. Mastercard’s Multi-Token Network sent the instructions to Kinexys, JPMorgan’s blockchain division. JPMorgan then sent the corresponding US currency to Ripple’s bank account in Singapore.
The leg of the dollar went through the channels of the banking system instead of being fixed on the chains. The hybrid structure allows organizations to hold the rails of the blockchain and keep fiat flowing within the regulated channels.
The four companies created the test as the first time that the stock was settled on the border with banks in near real time outside of normal banking hours. The OUSG is one of the biggest assets of the Treasury and reached at The price of XRP in the past this to increase agency opportunities.
“This test is an important step in establishing a system for financial markets.”
Zack Chestnut, head of trading at Kinexys by JP Morgan, said in a words.
A Wider Tokenization Push
Tokenized US Treasuries generate $15 billion in value, according to RWA.xyz. This number is small compared to the Treasury market of $30 trillion, but it has grown significantly since 2024 as banks and asset managers tried to stabilize the government chains.
Big companies are adding more. The Depository Trust and Clearing Corporation said this week it will launch a benchmarking exercise in October, with Treasury bills and bonds among the eligible assets. Nasdaq plans to sell tokenized stocks and exchange-traded funds (ETFs).
For JPMorgan, the redemption follows the deployment of Kinexys that involves foreign exchange, deposit tokens, and dollar transfers. Ripple has built the XRP Ledger with permissioned domains and zero-knowledge tools for regulated users.
A note Ripple, JPMorgan & Mastercard Pull First Tokenized Treasury Agreement appeared for the first time BeInCrypto.
