Ondo Finance to launch tokenised US Treasury on XRP Ledger

Ondo Finance has announced plans to deploy its tokenised US Treasury fund, known as Ondo Short-Term US Government Treasuries (OUSG), on the XRP Ledger.

This integration aims to provide investors with access to institutional-grade government bonds that can be redeemed using Ripple’s RLUSD (CRYPTO:RLUSD) stablecoin.

The launch is expected within the next six months, with Ripple (CRYPTO:XRP) and Ondo (CRYPTO:ONDO) committed to seeding liquidity for OUSG upon its debut.

Currently, the OUSG fund boasts a total value locked (TVL) of $184 million and offers an annual percentage yield (APY) of 4.16%.

The OUSG tokens are backed by the BlackRock USD Institutional Digital Liquidity Fund, which enhances their security and reliability.

By utilising the XRP Ledger, OUSG tokens will allow for intraday settlement and redemptions, providing greater flexibility for investors.

Ripple's RLUSD stablecoin, launched in December 2024, has a market capitalisation of approximately $72.4 million and will facilitate the redemption process for OUSG.

The market for tokenised Treasury assets is currently valued at $3.43 billion and is part of a larger tokenised real-world asset market worth over $16.8 billion.

Industry experts predict that bond tokenisation could evolve into a $300 billion industry by 2030, highlighting the growing interest in digital assets.

Larry Fink, CEO of BlackRock, has been a vocal advocate for the broader tokenisation of financial assets, emphasising its potential impact on capital markets.

Markus Infanger from RippleX noted that the 24/7 intraday settlement enabled by tokenised assets like OUSG represents a significant shift in capital flow management.

This deployment on the XRP Ledger marks a step forward in bridging traditional finance with decentralised finance (DeFi), enhancing accessibility and efficiency for institutional investors.

As Ondo Finance integrates its offerings with the XRP Ledger, it positions itself at the forefront of innovation in the tokenisation of real-world assets.