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.
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 XRPL’s purpose-built tokenization rails.
How It Works On XRP Ledger
Institutional investors create or redeem OUSG in a single transaction by delivering or receiving RLUSD, Ripple’s dollar-pegged stablecoin that settles natively on XRPL. Because RLUSD itself moves in finality within three to five seconds, OUSG subscriptions bypass legacy cutoff times and traditional bank wires. Ripple and Ondo have committed liquidity to market-make both legs—RLUSD ↔ USD off-chain and RLUSD ↔ OUSG on-chain—so investors can scale in or out without slipping on spreads.
The entire flow remains permissioned at the edges and permissionless in the core. Qualified Purchasers authenticate through Ondo’s compliance portal (leveraging Decentralized Identifiers and verifiable credentials), receive an allow-list flag on-chain, and then interact with the built-in DEX like any other asset pair. Settlement remains atomic: OUSG units burn or mint the moment RLUSD transfers, eliminating the daylight-risk gap that plagues traditional T-plus settlement cycles.
XRPL’s deterministic order book, low fees, and native token-issuance primitives spare issuers the need to bolt on smart-contract wrappers for basic custody logic. Forthcoming Multi-Purpose Tokens (MPTs) will allow OUSG to embed cash-flow rights and compliance fences at the protocol level, while the planned lending protocol will let desks rehypothecate OUSG as repo collateral without bridging to another chain. Permissioned Domains will give asset managers namespace-level control over who trades within walled gardens—a prerequisite for regulated liquidity pools.
For treasury teams juggling intraday cash buffers, tokenized bills on XRPL unlock immediate redeployment of idle dollars. A fund manager who redeems OUSG at 21:00 ET on a 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 that sweep surplus RLUSD into OUSG every evening now capture US Treasury yield without operational drag.
Markus Infanger, SVP of RippleX, framed the launch as a watershed: “Ondo’s OUSG going live on the XRPL demonstrates that tokenized finance is no longer theoretical—it’s maturing in real markets. Institutions can now access high-quality assets like US Treasuries on public blockchains, with the compliance and efficiency they need. This represents progress in bringing trusted financial assets into a 24/7 market—enabling greater liquidity, operational efficiency, and faster access to capital.”
What Comes Next
Ripple and Boston Consulting Group’s joint report projects that tokenization will convert $19 trillion of real-world assets into programmable instruments by 2033. Treasuries have emerged as the beachhead: they are low-risk, deeply liquid, and already digitized in the Federal Reserve’s master ledger, making them ideal for the first wave of on-chain replication. Total tokenized-Treasury value has surged past $7 billion this year, more than doubling since January, and is on track to eclipse the entire stablecoin float of 2017 by year-end.
OUSG’s migration to XRPL could accelerate that trend. BlackRock’s BUIDL fund—the underlying asset pool into which OUSG deposits—distributes interest daily and permits same-day stablecoin redemptions, giving on-chain holders a money-market-fund experience without bank-hour limitations. By anchoring that mechanism in XRPL’s always-on settlement layer, Ripple and Ondo have effectively created a composable Treasury bill that “plugs and plays” with any XRPL-native application.
The immediate roadmap is functional rather than speculative: open a secondary RLUSD-OUSG order book on XRPL’s DEX, integrate OUSG as collateral in XRPL-based lending markets once live, and extend mint-and-burn access to additional Qualified Purchaser jurisdictions as regulators sign off on the identity stack. Longer term, Ripple plans to use RLUSD as the hub currency for other RWAs—starting with commercial paper and municipal notes—turning XRPL into a full-spectrum capital-markets substrate.
At press time, XRP traded at $2.32.
Featured image created with DALL.E, chart from TradingView.com
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