JPMorgan, Mastercard, Ripple and Ondo Finance have completed a test transaction with tokenized US Treasury bonds. The operation between banks from different countries was almost instantaneous.
As part of the deal, Ripple redeemed Ondo Short-Term US Government Treasuries (OUSG) tokens on the XRP Ledger through the Mastercard Multi-Token Network infrastructure and the Kinexys platform from JPMorgan. At the end of the transaction, dollars were credited to Ripple’s bank account in Singapore.
How the Settlement Scheme Worked
Ondo Finance processed the redemption of OUSG tokens from Ripple via the public XRP Ledger blockchain. After that, the Mastercard Multi-Token Network transmitted the settlement information to the Kinexys platform from JPMorgan. Then, JPMorgan sent the corresponding amount in dollars to Ripple’s bank account in Singapore.
At the same time, the dollar settlements still went through traditional banks, not entirely within the blockchain. This allows companies to combine blockchain and conventional banking infrastructure.
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According to the participants, such settlements had not been done before, where settlements with tokenized assets were made between different banks and countries almost in real time outside standard banking hours.
Currently, OUSG is considered one of the largest tokenized products based on US Treasury bonds. Previously, the asset also appeared on the XRP Ledger to expand access for institutional investors.
“This pilot project was an important step toward building infrastructure for the tokenized asset market for major financial players,” said Kinexys by JP Morgan’s Head of Commercial, Zach Chestnut.
Major Companies Continue to Move Into Tokenization
According to RWA.xyz, the volume of tokenized US Treasury bonds is now about $15 billion. For comparison, the entire US Treasuries market is estimated at about $30 trillion. However, interest in such instruments has grown significantly since 2024, when banks and asset managers began actively testing settlements via public blockchains.
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Major financial companies continue to expand infrastructure for such assets. This week, the Depository Trust and Clearing Corporation announced plans to launch its own tokenization service in October. The list of available assets will include US Treasury bills and bonds. Nasdaq is also preparing to launch trading in tokenized stocks and ETFs.
For JPMorgan , this is not the first such project with Kinexys, which the bank already uses for FX settlements, deposit tokens, and corporate dollar transfers.
Ripple, in turn, is betting on the use of XRP Ledger by large regulated companies, including tools for regulated market participants.
