Ondo Finance offers tokenized US Treasuries to the XRP Ledger

Through this initiative, institutional investors are set to benefit from access to Ondo Short-Term US Government Treasuries (OUSG), supported by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which can be minted and redeemed using Ripple USD (RLUSD), a USD-denominated stablecoin.

Ondo Finance provides tokenized US Treasuries to the XRP Ledger

The announcement comes just a few days after Ondo Finance expanded its operations into the Asia Pacific region by opening its first office in the area. The move came during a period of substantial growth in interest in digital assets in Asia Pacific, facilitated by factors such as an increasing crypto community, evolving regulatory landscapes, and scaling interest in exposure to US assets.

Ondo Finance and Ripple’s partnership

Ripple and Ondo Financial received commitments to seed OUSG liquidity after the initial deployment, assisting in the further adoption of tokenized RWAs on the XRPL. Additionally, this represents an extension of Ripple’s investments in tokenized US Treasuries, developing on its initial investment in OpenEden’s TBILL. At the same time, by providing OUSG to the XRPL, Ondo Finance aims to address the demand for liquidity, efficiency, and transparency with an onchain solution that delivers institutional-grade security.

Moreover, the XRPL is integrated with native compliance capabilities, including:

Institutional-grade security, as OUSG is supported by short-term US Treasuries managed with KUC and AML compliance. Also, decentralized Identifiers (DIDs) and onchain credential management facilitate regulatory adherence;
Accessible liquidity, with OUSG and RLUSD offering institutional investors low-risk liquidity services, allowing convenient portfolio management and scaled accessibility to tokenized US Treasuries;
Scalable decentralized blockchain technology, with the XRPL’s high throughput, decreased fees, and reliability allowing simplified tokenization and trading of RWAs.

Commenting on the announcement, representatives from Ondo Finance underlined that the integration supports the merging of a compliant, yield-bearing product with a network developed for institutional adoption, assisting institutions in expanding capital markets onchain.

Ondo Finance provides tokenized US Treasuries to the XRP Ledger

Ondo Finance and Ripple’s partnership