Ripple has incorporated treasuries backed by BlackRock into the XRP ledger following a business agreement.
On the Move: Ondo Finance's OUSG Goes Live on XRP Ledger
Dive Right In: Today, the XRP Ledger (XRPL) is stepping up its game in the finance world as Ondo Finance unveils their tokenized US Treasury fund, Ondo Short-Term US Government Treasuries (OUSG), directly on the network. This move allows Qualified Purchasers to mint or redeem OUSG at any time by settling with Ripple's enterprise-grade stablecoin RLUSD, creating a unique blend of BlackRock-custodied Treasury bills and a 24/7 public chain.
Big Leagues, No Small Change: The OUSG fund already boasts a hefty $670 million total value locked and sits comfortably among the top of the rapidly expanding tokenized-Treasury league table, sharing the spotlight with BlackRock's own BUIDL and Franklin Templeton's FOBXX. Ondo's broader real-world asset (RWA) platform manages around $1.3 billion, but this is just the beginning on a non-EVM chain – a testament to XRPL's purpose-built tokenization rails.
So, How Does It Work?
Investors can create or redeem OUSG by exchanging RLUSD, Ripple's dollar-pegged stablecoin, which settles natively on XRPL. Since RLUSD itself settles within three to five seconds, OUSG subscriptions bypass traditional bank wires and inefficient waiting periods. Ripple and Ondo have pledged liquidity to facilitated trading, ensuring investors can scale in or out without ruining their plans because of greedy spreads.
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A Perfect mix of Permissioned and Permissionless: The entire process remains permissioned at the edges and permissionless in the core. Investors authenticate through Ondo's compliance portal (leveraging Decentralized Identifiers and verifiable credentials), receive an allow-list flag on-chain, and then interact with the built-in DEX like any other asset pair. Settlement remains atomic, meaning OUSG units burn or mint the moment RLUSD transfers, eliminating the daylight-risk gap that plagues traditional T-plus settlement cycles.
XRPL's Tokenization Magic: XRPL's deterministic order book, low fees, and native token-issuance primitives save issuers the hassle of bolting on smart-contract wrappers for basic custody logic. Forthcoming Multi-Purpose Tokens (MPTs) will let OUSG embed cash-flow rights and compliance fences at the protocol level. Lending protocols are on the horizon, allowing desks to rehypothecate OUSG as repo collateral without needing bridgey-mcbridgedashes to another chain. Permissioned Domains will offer asset managers namespace-level control over who trades within walled gardens – a critical step for creating regulated liquidity pools.
What's in for Treasury Teams and Corporates?
Tokenized bills on XRPL grant treasury teams the opportunity to redeploy idle dollars instantly. A fund manager who cashes out OUSG at 21:00 ET on a Friday will have RLUSD within seconds, empowering them to dive into overnight reverse-repo, stablecoin liquidity farming, or FX settlement in Asia before traditional markets have even started the day. On the other hand, corporates can sweep surplus RLUSD into OUSG every evening to capture US Treasury yield without the operational headache.
Markus Infanger, SVP of RippleX, summed it up concisely: "Ondo's OUSG going live on the XRPL demonstrates that tokenized finance is no longer theoretical – it's maturing in real markets. Institutions can now access high-quality assets like US Treasuries on public blockchains, with the compliance and efficiency they need. This represents progress in bringing trusted financial assets into a 24/7 market – enabling greater liquidity, operational efficiency, and faster access to capital."
The Roadmap Ahead
Ripple and Boston Consulting Group's joint report predicts that tokenization will convert $19 trillion of real-world assets into programmable instruments by 2033. Treasuries have emerged as the starting point: they are low-risk, deeply liquid, and already digitized in the Federal Reserve's master ledger, making them ideal for the first wave of on-chain replication. Total tokenized-Treasury value has surged past $7 billion this year, more than doubling since January, and is expected to exceed the entire stablecoin float of 2017 by year-end.
OUSG's migration to XRPL could accelerate this trend. By anchoring its mechanics in XRPL's always-on settlement layer, Ripple and Ondo have essentially created a composable Treasury bill that "plugs and plays" with any XRPL-native application. The immediate roadmap includes opening a secondary RLUSD-OUSG order book on XRPL's DEX, integrating OUSG as collateral in XRPL-based lending markets once they go live, and spreading mint-and-burn access to additional Qualified Purchaser jurisdictions as regulators give the green light to the identity stack. Long-term plans involve using RLUSD as the hub currency for other RWAs, starting with commercial paper and municipal notes, making XRPL a prime location for full-spectrum capital markets. At press time, XRP traded at $2.32.
The use of the XRP Ledger (XRPL) in Ondo Finance's OUSG tokenized US Treasury fund opens up new avenues for investing in finance, as this technology combines financial assets with the speed and efficiency of blockchain.
With the OUSG fund already boasting a significant TVL of $670 million, it indicates a growing interest in tokenized Treasury assets, potentially substantiating the prediction that tokenization will convert $19 trillion of real-world assets into programmable instruments by 2033.
