Ondo Finance has carried out the world’s first near-instantaneous cross-border and cross-bank redemption of a tokenized U.S. Treasury fund. The pilot, executed in partnership with Kinexys by J.P. Morgan, Mastercard, and Ripple, showcases how public blockchain technology can integrate seamlessly with traditional banking systems to enable 24/7 global settlements. This marks a departure from conventional processes that depend on delayed wire transfers and rigid banking hours.
The transaction centered on Ondo’s Short-Term U.S. Government Treasuries (OUSG) product, a tokenized fund designed for accredited institutional investors seeking exposure to short-duration US government securities.
Ripple initiated the redemption of a portion of its OUSG holdings, which were issued on the XRP Ledger (XRPL), a public blockchain.
The asset side of the deal cleared in under five seconds. Ondo then generated a fiat payment instruction that traveled through Mastercard’s Multi-Token Network (MTN). This network bridges on-chain assets with conventional money movement.
Kinexys by J.P. Morgan’s blockchain platform received the instruction, debited Ondo’s designated blockchain deposit account, and routed U.S. dollar proceeds via its correspondent banking network to Ripple’s account in Singapore.
What makes this pilot significant is its ability to synchronize the blockchain leg of the trade with traditional interbank settlement in a single, unified flow.
Previously, redeeming tokenized assets often required separate, manual steps confined to business-day windows.
Here, the entire process operated outside those limitations, demonstrating true near-real-time coordination across borders and institutions.
The result is a practical blueprint for scalable, continuous tokenized asset markets that function around the clock and across jurisdictions.
Industry leaders hailed the achievement. Ian De Bode, President of Ondo Finance, described it as the first time tokenized US Treasuries had settled across borders and banks in near real time, outside traditional banking hours.
He noted that linking public blockchains to interbank rails lays the foundation for global markets that never close.
Markus Infanger, Senior Vice President at RippleX, called the pilot a meaningful advance in showing how tokenized assets can move fluidly between public ledgers and the broader financial system, turning cross-border transactions into a single integrated process.
Zack Chestnut, Global Head of Commercialization at Kinexys by J.P. Morgan, stressed the importance of cross-industry collaboration to realize institutional-scale tokenized markets.
Raj Dhamodharan, Executive Vice President for Blockchain and Digital Assets at Mastercard, highlighted the shift toward real-time tokenized commerce and the MTN’s role in delivering speed, trust, and interoperability using existing bank accounts.
This collaboration arrives as tokenized assets gain traction among institutions seeking liquidity, transparency, and efficiency.
OUSG, in particular, offers accredited investors and qualified purchasers compliant on-chain access to short-term Treasuries with instant minting and redemption capabilities.
By proving that redemptions can span public blockchains and global banking infrastructure without friction, the pilot removes a major barrier to wider adoption.
It signals a maturing ecosystem where tokenized finance can support 24/7 liquidity management, cross-border payments, and more efficient capital flows worldwide. As regulatory clarity improves and infrastructure matures, initiatives like this one are accelerating the convergence of decentralized technology and traditional finance.