Ondo Finance, a tokenized real-world asset platform, is making significant strides in the financial technology landscape by introducing its $185 million U.S. Treasury token to the enterprise-focused XRP Ledger network. This strategic move aims to broaden Ondo’s offering for institutional investors, according to a recent announcement by the companies.
The Ondo Short-Term US Government Treasuries (OUSG) token is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), allowing qualified investors to mint and redeem tokens with remarkable efficiency, thanks to the utilization of Ripple’s RLUSD stablecoin. As indicated in a recent blog post, the deployment of this innovative token is anticipated to go live within the next six months.
Both Ripple, the architect behind the XRP Ledger, and Ondo Finance have pledged seed investments to foster initial liquidity for the token on this network. However, the specifics of these allocations remain undisclosed.
The rapid growth of tokenization in the realm of real-world assets (RWA) reflects a pivotal transformation in the financial sector, enabling the representation of traditional assets such as bonds and credit on a blockchain. This evolution is driven by the desire for swifter settlement times and enhanced operational efficiency compared to conventional banking methods.
Leading the charge in this burgeoning trend are tokenized U.S. Treasury notes, which have surged to a $3.5 billion asset class, more than quadrupling in value over the past year, as reported by rwa.xyz data.
Markus Infanger, a senior vice president at RippleX, commented on the significance of this development: “The 24/7 intraday settlement enabled by tokenized assets like OUSG marks a transformative shift in capital flow management, breaking free from traditional trading hours and slow settlements. These low-risk, high-quality liquidity options not only provide better accessibility for investors but also introduce greater stability to blockchain-based markets.”
Following OpenEden’s TBILL, OUSG emerges as the second tokenized treasury product accessible on the XRP Ledger. Previously, OUSG was available on Ethereum, Polygon, and Solana, showcasing its versatility in the rapidly evolving digital asset landscape.