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HomeNewsOndo Finance Launches Tokenized Treasury Fund on XRP Ledger, Targets Institutional Investors

Ondo Finance Launches Tokenized Treasury Fund on XRP Ledger, Targets Institutional Investors

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  • Ondo Finance will launch its OUSG fund on XRP Ledger, partnering with Ripple to offer tokenized Treasuries to institutional investors.
  • Ripple added OpenEden’s TBILL to XRPL in 2024; the tokenized Treasury market now exceeds $3.5 billion.

Ondo Finance will integrate its U.S. Treasury-backed token, OUSG, into Ripple’s XRP Ledger (XRPL) to expand institutional access to tokenized government debt.

The collaboration, announced January 28, follows Ripple’s August 2024 addition of OpenEden’s TBILL, another tokenized Treasury product, to the same network. Ondo’s OUSG fund, supported by BlackRock’s BUIDL platform, enables round-the-clock minting and redemption using Ripple’s stablecoin, RLUSD.

Ripple designed XRPL to prioritize compliance and scalability for enterprise use. Ondo’s move aligns with this framework, aiming to attract financial institutions seeking regulated, yield-generating assets.

Katie Wheeler, Ondo’s vice president of partnerships, described the integration as a “convergence” of compliance-focused products and institutional-grade infrastructure.

The tokenized U.S. Treasuries market now totals $3.5 billion, driven by demand for blockchain-based exposure to low-risk government bonds. Ondo’s OUSG holds a market value of $185 million, while its Dollar Yield product manages $384 million in deposits. BlackRock’s BUIDL and Franklin Templeton’s FOBXX dominate the sector, with $600 million and $509 million in assets, respectively. OpenEden’s TBILL, also on XRPL, trails at $82 million.

Ripple’s partnership with Ondo underscores its strategy to position XRPL as a hub for real-world asset (RWA) tokenization. Unlike decentralized networks, XRPL emphasizes regulatory compatibility, a feature critical for institutional adoption. The ledger’s integration with RLUSD allows investors to trade tokenized Treasuries without traditional banking delays.

Tokenized RWAs have grown rapidly since 2023, with U.S. Treasuries leading the trend. Analysts attribute this to rising interest rates and institutional demand for blockchain efficiency. However, adoption remains concentrated among asset managers and crypto-native firms. Ondo’s expansion onto XRPL could widen participation by leveraging Ripple’s existing partnerships with banks and payment providers.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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