Ripple Partners with Ondo Finance on XRP Ledger

Ripple has partnered with Ondo Finance to launch tokenized US Treasuries on the XRP Ledger, marking a significant step in bridging traditional finance with blockchain technologies.

Ripple’s partnership with Ondo Finance could influence the growing trend of tokenizing traditional assets, enhancing institutional DeFi access and increasing functionality on the XRP Ledger.

Ripple, a prominent blockchain company, and Ondo Finance, a DeFi platform, announced their collaboration to bring tokenized US Treasuries (OUSG) to the XRP Ledger (XRPL). This initiative was detailed in a recent blog post by Ondo Finance, highlighting the integration’s benefits for institutional clients utilizing the RLUSD stablecoin for transactions.

The integration involves Ripple’s RLUSD stablecoin as the medium for minting, redeeming, and trading OUSG on XRPL. Nathan Allman, Ondo Finance’s CEO, emphasized this as a step toward bridging on-chain markets with traditional finance, following similar successful launches on Ethereum and Solana.

By bringing OUSG to the XRPL, Ondo Finance is bringing institutional-grade assets directly to the institutions, providing access to high-quality tokenized assets as flexible treasury management tools…this expansion furthers our mission to bridge traditional finance and onchain markets — Nathan Allman, Founder and CEO, Ondo Finance.

Ripple and Ondo Finance are jointly providing initial liquidity for OUSG on XRPL. This collaboration underscores Ripple’s strategy to expand into asset tokenization , strengthening its role in the Real World Assets (RWA) market. The strategic move comes amid growing interest, as indicated by XRP’s price performance at over $2.30.

Financial markets may experience increased blockchain usage due to this collaboration, potentially impacting broader acceptance of tokenized financial products. Ondo Finance has seen positive receptiveness to multi-chain operations, with previous integrations of assets from BlackRock, WisdomTree, and Franklin Templeton.

Potential regulatory and technological outcomes from this partnership include the mainstreaming of tokenized financial instruments and the acceleration of compliant DeFi products. With on-chain integration, Ripple and Ondo could foster higher institutional acceptance.