XRP Ledger Hosts $693M Treasury Token by Ondo Finance

XRP Ledger has taken a major step towards expanding its role in decentralized finance as Ondo Finance launched a $693 million tokenized U.S. Treasury product on the network. The move showcases the growing intersection between blockchain and traditional financial instruments, with XRP Ledger becoming a key player in the rise of real-world asset (RWA) tokenization.

Ondo Finance, a blockchain-based tokenization platform known for bridging traditional finance with DeFi, has officially deployed its flagship token — the Ondo Short-Term U.S. Government Treasuries (OUSG) — on the XRP Ledger. According to a joint press release, this launch provides institutional investors an on-chain alternative for managing idle funds while gaining exposure to yield-bearing Treasuries.

The token, backed by U.S. government debt, is now available to qualified purchasers through a mint and redeem process that uses Ripple’s U.S. dollar stablecoin, RLUSD. The initial rollout includes a $30 million supply to ensure sufficient liquidity, with OUSG’s total issuance now reaching $693 million — making it the third-largest tokenized Treasury product on the market, behind BlackRock’s BUIDL and Franklin Templeton’s BENJI, according to rwa.xyz.

Ian De Bode, Chief Strategy Officer at Ondo Finance, commented on the development: “This integration strengthens our commitment to providing reliable and composable infrastructure at the intersection of traditional finance and DeFi.” The move aligns with Ondo’s previously stated roadmap from January, which aimed for integration within six months – a goal successfully achieved, as originally reported by CoinDesk.

The Surge of RWA Tokenization

The collaboration underscores the booming interest in RWA tokenization, which refers to the practice of bringing traditionally off-chain assets — such as bonds, securities, and real estate — onto blockchain platforms. Over the past year, the market capitalization of tokenized U.S. Treasuries has soared to $7.2 billion, up sharply from just $1.7 billion, as noted by data from rwa.xyz.

These tokenized financial instruments allow investors to earn consistent returns similar to a money market fund, without having to move off-chain. Additionally, they are increasingly leveraged as collateral within DeFi protocols and serve as reserve assets, enhancing both on-chain stability and capital efficiency.

XRPL’s Tokenization Momentum

The recent debut of OUSG on XRP Ledger complements a broader wave of tokenization initiatives targeting the XRPL ecosystem. Just this week, Guggenheim Treasury Services announced it will issue Digital Commercial Paper on XRPL. In addition, Dubai recently unveiled a real estate tokenization platform utilizing XRP Ledger as part of a $16 billion strategy to digitize its real estate sector.

Collectively, these developments fortify XRPL’s stance as a foundational layer for real-world digital assets. With networks like XRPL enabling scalable, low-fee token management, both private and public institutions are leveraging blockchain to digitize traditional finance faster than ever.

Related: Expert Advice: Sell XRP If You’re Confused

Further Reading: RWA Tokenization Is Going to Trillions Much Faster Than You Think