The XRP Ledger (XRPL) moved from theory to production-grade finance today as Ondo Finance switched on its tokenized US Treasury fund, Ondo Short-Term US Government Treasuries (OUSG), directly on the network.
The launch lets Qualified Purchasers mint or redeem OUSG around the clock by settling with Ripple’s enterprise-grade stablecoin RLUSD, effectively marrying BlackRock-custodied Treasury bills to a 24/7 public chain and its native decentralized exchange.
Revolutionary Settlement Infrastructure
OUSG is no boutique proof-of-concept. The fund already commands more than $670 million in total value locked and sits alongside BlackRock’s own BUIDL and Franklin Templeton’s FOBXX at the top of the rapidly expanding tokenized-Treasury league table.
Ondo’s broader real-world-asset (RWA) platform manages roughly $1.3 billion, but this is its first deployment on a non-EVM chain—an endorsement of XRP ledger’s purpose-built tokenization rails.
The mechanics are striking for their simplicity. Institutional investors can create or redeem OUSG tokens in a single transaction by delivering or receiving RLUSD, which settles natively on XRP ledger within three to five seconds.
This bypasses traditional cutoff times and bank wire delays that plague legacy Treasury operations. Ripple and Ondo have committed liquidity to market-make both legs—RLUSD-to-USD conversions off-chain and RLUSD-to-OUSG trading on-chain—ensuring investors can scale positions without spread slippage.
The entire process maintains regulatory compliance through Ondo’s portal, which uses Decentralized Identifiers and verifiable credentials to authenticate Qualified Purchasers. Once approved, investors receive an allow-list flag on-chain and can interact with XRPL’s built-in DEX like any other asset pair.
Tokenization Market Takes Shape
For treasury teams managing intraday cash buffers, tokenized bills on XRP ledger unlock immediate redeployment of idle dollars.
A fund manager redeeming OUSG at 9 PM ET on Friday receives RLUSD within seconds and can cycle into overnight reverse-repo, stablecoin liquidity farming, or FX settlement in Asia before traditional markets even open. Conversely, corporates sweeping surplus RLUSD into OUSG every evening now capture US Treasury yield without operational drag.
This deployment signals broader market momentum. Ripple and Boston Consulting Group project that tokenization will convert $19 trillion of real-world assets into programmable instruments by 2033. Treasuries have emerged as the beachhead asset class—they’re low-risk, deeply liquid, and already digitized in the Federal Reserve’s master ledger. Total tokenized-Treasury value has surged past $7 billion this year, more than doubling since January.
XRP ledger’s native tokenization capabilities, low fees, and deterministic order book spare issuers from building smart-contract wrappers for basic custody logic. Forthcoming Multi-Purpose Tokens will embed cash-flow rights and compliance controls at the protocol level, while planned lending protocols will enable OUSG to serve as repo collateral without bridging to other chains.
“Ondo’s OUSG going live on the XRP ledger demonstrates that tokenized finance is no longer theoretical—it’s maturing in real markets,” said Markus Infanger, SVP of RippleX. The launch represents more than a single product deployment—it’s a blueprint for bringing trusted financial assets into always-on, programmable markets.