Ondo Finance will deploy Ondo Short-Term US Government Treasuries (OUSG), its tokenized US Treasury fund, on the XRP Ledger (XRPL), a decentralized layer-1 blockchain. This deployment, set to go live within the next six months, will bring OUSG to the XRPL’s broad institutional user base, introducing a composable and compliance-first asset to a blockchain built for financial institutions. This integration establishes an avenue for institutional DeFi and advanced cash management solutions, bringing DeFi and traditional finance closer than ever.

Key Highlights of the Deployment

• Bringing OUSG to the XRPL: Institutional investors on XRPL will, for the first time, have access to OUSG, a product combining security, compliance, and yield, backed by a high-quality US Treasuries fund and stringent KYC/AML standards.
• Established Liquidity: Ripple and Ondo have secured commitments to seed OUSG liquidity upon initial deployment, driving further adoption of tokenized RWAs on the XRPL.
• 24/7 Mint and Redemption Features: A key feature of OUSG on the XRPL is going to be seamless interoperability with Ripple’s RLUSD stablecoin. This integration will allow instant minting and redemption of OUSG via RLUSD, empowering users with round-the-clock liquidity and financial flexibility.

Expanding the Institutional-Grade Ecosystem on XRPL

OUSG delivers a compliant, yield-bearing investment product backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) and high-quality short-term US Treasuries. The XRPL, renowned for its focus on traditional finance and featuring deep institutional relationships, provides the ideal infrastructure for integrating tokenized RWAs.

The deployment of OUSG on the XRPL brings a host of advantages:

• Institutional-Grade Security: Backed by a secure short-term US Treasuries fund and managed with rigorous compliance measures, OUSG’s inherent security aligns with the institutional focus of the XRPL. Native compliance features on the XRPL, such as Decentralized Identifiers (DIDs) and onchain credential management, enhance regulatory adherence.
• Accessible Settlement and Liquidity: OUSG and RLUSD offer high-quality, low-risk liquidity options. The 24/7 intraday settlement breaks free from traditional trading hours, enabling efficient portfolio management and greater access to tokenized US Treasuries-backed assets.
• Institutional-Grade Infrastructure: The XRPL’s high throughput, low fees, and reliability make it a powerful platform for tokenized RWAs, supporting institutional-grade DeFi and treasury management.

The XRPL and OUSG: Institutional Finance Harmonized

The XRP Ledger is uniquely tailored to the needs of traditional financial institutions. With over a decade of experience powering cross-border payments, digital asset custody, and stablecoin issuance, the XRPL offers an unparalleled foundation for RWA tokenization and institutional DeFi.

With key features of the XRPL including advanced compliance tools like DIDs and Price Oracles, and upcoming innovations such as Multi-Purpose Tokens (MPTs) and Permissioned Domains, the XRPL’s infrastructure soundly complements OUSG’s benefits, providing a natural home for tokenized US Treasuries and positioning the XRPL as a cornerstone for institutional-grade financial solutions.

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. By enabling institutions to manage cash, optimize portfolios, and access high-quality yield products entirely onchain, the intersection of DeFi and traditional finance, and the broad adoption of tokenized assets lives on the XRPL.

Source: Ondo