XRP Ledger Welcomes BlackRock-Backed Treasuries Through Ripple Partnership

The XRP Ledger (XRPL) transitioned from concept to production-grade finance today as Ondo Finance activated its tokenized US Treasury fund, Ondo Short-Term US Government Treasuries (OUSG), directly on the network. The initiation allows Qualified Purchasers to mint or redeem OUSG around the clock by settling with Ripple’s enterprise-grade stablecoin RLUSD, effectively integrating BlackRock-custodied Treasury bills into a continuous public chain and its native decentralized exchange.

OUSG is far from a niche proof-of-concept. The fund currently manages over $670 million in total value locked and ranks alongside BlackRock’s own BUIDL and Franklin Templeton’s FOBXX at the forefront of the rapidly developing tokenized-Treasury league standings. Ondo’s wider real-world-asset (RWA) platform oversees about $1.3 billion, but this represents its first deployment on a non-EVM chain—validating XRPL’s specialized tokenization capabilities.

How It Operates On XRP Ledger

Institutional investors generate or redeem OUSG in a single operation by delivering or receiving RLUSD, Ripple’s dollar-pegged stablecoin that finalizes natively on XRPL. Given that RLUSD transactions finalize within three to five seconds, OUSG subscriptions bypass traditional cutoff times and legacy bank wires. Ripple and Ondo have provided liquidity to facilitate both operations—RLUSD ↔ USD off-chain and RLUSD ↔ OUSG on-chain—ensuring investors can enter or exit without slipping on spreads.

The entire process remains permissioned at the boundaries and permissionless at the core. Qualified Purchasers verify their identity through Ondo’s compliance portal (utilizing Decentralized Identifiers and verifiable credentials), obtain an allow-list flag on-chain, and then engage with the integrated DEX as they would with any asset pair. Settlement is atomic: OUSG units are burned or minted the moment RLUSD is transferred, eliminating the daylight-risk gap that hampers traditional T-plus settlement cycles.

XRPL’s deterministic order book, minimal fees, and native token-issuance primitives eliminate the need for issuers to attach smart-contract wrappers for basic custody logic. Upcoming Multi-Purpose Tokens (MPTs) will enable OUSG to incorporate cash-flow rights and compliance barriers at the protocol level, while the anticipated lending protocol will permit desks to rehypothecate OUSG as repo collateral without needing to bridge to another chain. Permissioned Domains will offer asset managers namespace-level authority over who trades within exclusive environments—a necessity for regulated liquidity pools.

For treasury teams managing intraday cash buffers, tokenized bills on XRPL provide instant redeployment of idle funds. A fund manager who redeems OUSG at 21:00 ET on a Friday receives RLUSD in mere seconds and can transition into overnight reverse-repo, stablecoin liquidity farming, or FX settlement in Asia before traditional markets even commence. Conversely, corporates sweeping surplus RLUSD into OUSG every evening now benefit from US Treasury yield without operational lag.

Markus Infanger, SVP of RippleX, positioned the launch as a significant milestone: “Ondo’s OUSG going live on the XRPL signifies that tokenized finance is no longer hypothetical—it’s evolving in real markets. Institutions can now access premium assets like US Treasuries on public blockchains, with the compliance and efficiency they require. This marks progress in incorporating trusted financial assets into a 24/7 market—facilitating enhanced liquidity, operational efficiency, and quicker access to capital.”

What Lies Ahead

Ripple and Boston Consulting Group’s collaborative report forecasts that tokenization will transform $19 trillion of real-world assets into programmable assets by 2033. Treasuries have surfaced as the initial focus: they are low-risk, highly liquid, and already digitized in the Federal Reserve’s master ledger, making them prime candidates for the first wave of on-chain replication. The overall tokenized-Treasury value has climbed past $7 billion this year, more than doubling since January, and is on course to surpass the total stablecoin circulation of 2017 by year-end.

OUSG’s transition to XRPL could expedite that progression. BlackRock’s BUIDL fund—the underlying asset pool where OUSG deposits—distributes interest daily and allows same-day stablecoin redemptions, providing on-chain holders with a money-market-fund experience free from bank-hour constraints. By anchoring that mechanism in XRPL’s always-active settlement layer, Ripple and Ondo have effectively developed a composable Treasury bill that “plugs and plays” with any XRPL-native application.

The immediate agenda is pragmatic rather than speculative: launch a secondary RLUSD-OUSG order book on XRPL’s DEX, integrate OUSG as collateral in XRPL-based lending markets once operational, and broaden mint-and-burn access to additional Qualified Purchaser regions as regulators approve the identity framework. In the long run, Ripple aims to use RLUSD as the central currency for other RWAs—beginning with commercial paper and municipal notes—transforming XRPL into a comprehensive capital-markets foundation.

At press time, XRP was valued at $2.32.

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