The XRP Ledger is set to welcome an institutional-grade financial solution with the deployment of Ondo Finance’s tokenized U.S. Treasury fund.
Today, Ondo Finance
disclosed
plans to launch its Ondo Short-Term US Government Treasuries (OUSG) on XRPL.
The company revealed this move in a tweet today, indicating that the tokenized fund will launch on XRPL within the next six months.
We are bringing OUSG to the XRP Ledger with @Ripple.
OUSG, an institutional-grade product backed by tokenized US Treasuries and BlackRock’s BUIDL fund, represents a natural fit for a blockchain purpose-built for institutional adoption.
See how Ondo and Ripple are powering… pic.twitter.com/pLjZnvbmgc
— Ondo Finance (@OndoFinance) January 28, 2025
According to the announcement, this move will offer institutional investors on XRPL access to a secure, compliant, and yield-bearing asset backed by high-quality U.S. Treasuries.
With rigorous KYC/AML standards in place, OUSG promises to infuse institutional-grade finance into the blockchain ecosystem, enabling users to invest in
tokenized real-world assets (RWAs)
in a compliant manner.
Key Features of OUSG on XRPL
The introduction of OUSG on the XRP Ledger presents several advanced features designed to bolster institutional adoption of tokenized assets.
In a collaborative effort, Ondo and Ripple have committed to providing initial liquidity for OUSG, ensuring a smooth entrance into the XRPL. Among the standout features is the ability to mint and redeem OUSG on a 24/7 basis using Ripple’s RLUSD stablecoin.
This seamless minting and redeeming process with RLUSD will offer users continuous liquidity and increased financial flexibility, free from traditional trading hours constraints.
XRPL’s low fees, high throughput, and extensive institutional connections make it an ideal environment for integrating tokenized RWAs like OUSG. Furthermore, its inherent compliance features, such as Decentralized Identifiers (DIDs) and on-chain credential management, provide substantial regulatory adherence.
As an institutional investment vehicle, OUSG is underpinned by the BlackRock USD Institutional Digital Liquidity Fund
(BUIDL).
Other Tokenized Funds on XRPL
In August 2024, OpenEden
launched tokenized U.S. Treasury bills on XRPL
, a significant milestone in melding traditional financial assets with blockchain technology.
These tokens are backed by short-dated U.S. T-bills and reverse repurchase agreements, all while adhering to stringent KYC and AML standards. Ripple notably invested $10 million in OpenEden’s TBILL tokens, aligning itself with the broader goal of promoting tokenized asset solutions.
Now, Ondo Finance is embarking on a similar journey. By integrating OUSG into XRPL, Ondo Finance is not only advancing its position in the burgeoning world of institutional DeFi but also redefining treasury management practices on the blockchain.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
