us treasury bonds tokenization

Ondo Finance Brings US Treasury Bond Tokenization to the XRP Ledger (XRPL)

Ondo Finance, an issuer of tokenized real assets (RWA), has integrated its tokenized US Treasury bonds on the XRP Ledger (XRPL).

This makes it easier for institutional investors to access OUSG, Ondo’s US Treasury bond fund, backed by BlackRock’s Institutional USD Digital Liquidity Fund (BUIDL). Thanks to this integration, investors can mint and redeem OUSG at any time, using the Ripple USD stablecoin (RLUSD).

More detailed information: Ondo Finance has pioneered the tokenization of US Treasury bonds, surpassing $600 million in total value locked (TVL). OUSG, as the first tokenized Treasury bond fund, allows qualified investors to make instant subscriptions and redemptions at any time, with daily interest accrual, low fees, and multi-chain compatibility.

Both Ripple and Ondo have committed to generating liquidity on OUSG upon launch, which will contribute to the expansion of tokenized RWAs within XRPL. This move follows Ripple’s previous investments in tokenized Treasury bonds, such as its stake in OpenEden’s TBILL.

ondo & ripple: us treasury bond tokenization xrpl

More detailed information: The XRP Ledger is designed to meet the requirements of traditional financial institutions, incorporating advanced features such as tokenization, trading, escrow, and regulatory compliance, making it an ideal environment for real-world asset tokenization and institutional DeFi adoption. For over a decade, Ripple has used XRPL to power cross-border payments, digital asset custody, and stablecoin issuance. With advanced features such as its native decentralized exchange (DEX), automated market maker (AMM), decentralized identifiers (DID), price oracles, and new functionalities in development such as multi-purpose tokens (MPT), permissioned domains, and a lending protocol, XRPL continues to establish itself as a go-to platform for the blockchain-based institutional finance sector.

Tokenization of US Treasury bonds has seen growth driven by increasing demand for solutions that bring liquidity, efficiency, and transparency to capital markets. The tokenized asset market is estimated to reach a value of $16 trillion by 2030.

The addition of OUSG to XRPL addresses this demand through an on-chain solution that offers the benefits of liquidity accessibility for institutional investors, while also providing institutional-grade security as OUSG is backed by short-term Treasury bonds and meets strict KYC and AML requirements. XRPL, meanwhile, integrates native decentralized identifier (DID) and on-chain credential management functionalities.

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