• This pilot demonstrates coordination between public blockchain infrastructure and interbank settlement rails.
• Milestone establishes a framework for 24/7, near real-time cross-border settlement across global banks using Ondo tokenized assets.
• The XRP Ledger processed the asset leg of the transaction in under five seconds, supporting institutional-grade tokenized asset infrastructure operating globally and around the clock.

Ondo Finance has successfully completed the first near real-time cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. The pilot was conducted in collaboration with Kinexys by J.P. Morgan, Mastercard, and Ripple. This establishes a framework for 24/7, near real-time cross-border settlement across global banks for tokenized asset redemption.

As part of the pilot, Ripple redeemed tokenized assets issued on the XRP Ledger (XRPL), a public blockchain. The associated fiat settlement was triggered via the Mastercard Multi-Token Network (MTN), which enables interoperability between different forms of value and allows traditional financial institutions to interact with onchain commerce. Fiat settlement execution was initiated on Kinexys by J.P. Morgan’s blockchain infrastructure, which also supported onward instruction to J.P. Morgan’s correspondent banking network for cross-border delivery of funds.

The transaction represents a redemption of a tokenized treasury asset executed in near real-time, outside traditional cut-off windows, paired with cross-border transfer of funds triggered on blockchain infrastructure. One leg of the transaction occurred on a public blockchain, while the other settled on bank infrastructure. This is the first transaction of its kind between global financial institutions.

Connecting Public Blockchains with Global Bank Infrastructure

As part of the pilot, Ripple redeemed a portion of its Ondo Short-Term U.S. Government Treasuries (OUSG) holdings on XRPL. Ondo processed the redemption and initiated a fiat payout instruction via the Mastercard MTN, which routed the instruction to Kinexys by J.P. Morgan. Kinexys debited Ondo’s Blockchain Deposit Account and settled U.S. dollar proceeds to Ripple’s bank account in Singapore via its correspondent banking network.

While tokenized real-world assets have grown significantly, redemption infrastructure has largely remained dependent on traditional wire systems, manual processes, and limited operating hours. This pilot demonstrates an integrated model in which blockchain-based asset redemption can trigger settlement without the need for siloed traditional infrastructures to initiate payment settlement.

The result is a unified transaction flow in which blockchain execution and traditional bank settlement operate in concert rather than requiring separate instructions.

“This milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows,” said Ian De Bode, President of Ondo Finance. “By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close.”

“This marks a meaningful step forward in demonstrating that tokenized assets can move seamlessly between public blockchain infrastructure and the global financial system,” said Markus Infanger, SVP of RippleX. “The XRP Ledger enables real-time asset movement, and when paired with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions as a single, integrated flow.”

Zack Chestnut, Global Head of Commercialization at Kinexys by J.P. Morgan, said, “This pilot is an important step towards establishing a framework for institutional-scale tokenized asset markets. To see widespread adoption of tokenized financial products, we need wholesale cross-industry collaboration across geographies, global banking infrastructure and public blockchains. We’re excited to continue working with Ondo, Ripple and Mastercard to bring this to life.”

“As tokenized assets continue to see strong institutional momentum and engagement, the focus is quickly shifting to how tokenized commerce can operate at scale in real time,” said Raj Dhamodharan, executive vice president, Blockchain and Digital Assets at Mastercard. “With the Mastercard Multi‑Token Network, we’re enabling near real‑time, cross‑border settlement using existing bank accounts—bringing coordination, trust, and interoperability to institutional on‑chain flows.”

Advancing 24/7, Multi-Bank, Cross-Border Settlement

For tokenized financial products to operate at institutional scale, settlement infrastructure must function across banks and geographies outside traditional operating windows. This pilot demonstrates a practical framework for continuous, real-time coordination between transacting parties on public blockchains and global banking infrastructure.

The architecture framework is designed to support redemptions from any public blockchain on which OUSG is issued, including XRPL, providing a model for how Ondo tokenized assets can integrate with financial networks.

Source: Ondo