The XRP Ledger is set to welcome an institutional-grade financial solution with the deployment of Ondo Finance’s tokenized U.S. Treasury fund.
Today, Ondo Finance disclosed plans to launch its Ondo Short-Term US Government Treasuries (OUSG) on XRPL. The company disclosed this move in a tweet today, revealing that the tokenized fund will launch on XRPL within the next six months.
We are bringing OUSG to the XRP Ledger with @Ripple.
OUSG, an institutional-grade product backed by tokenized US Treasuries and BlackRock’s BUIDL fund, represents a natural fit for a blockchain purpose-built for institutional adoption.
See how Ondo and Ripple are powering… pic.twitter.com/pLjZnvbmgc
— Ondo Finance (@OndoFinance) January 28, 2025
According to the notification, this move will give institutional investors on XRPL access to a secure, compliant, and yield-bearing asset backed by high-quality U.S. Treasuries.
With rigorous KYC/AML standards in place, OUSG promises to bring institutional-grade finance to the blockchain scene, allowing users to invest in tokenized real-world assets (RWAs) in a compliant manner.
Key Features of OUSG on XRPL
The integration of OUSG on the XRP Ledger introduces several advanced features to support institutional adoption of tokenized assets.
Notably, Ondo and Ripple have entered a partnership, committing to providing initial liquidity for OUSG to ensure its adoption on the XRPL. A key feature is the 24/7 minting and redemption of OUSG via Ripple’s RLUSD stablecoin.
Specifically, minting and redeeming OUSG with RLUSD will be seamless on XRPL. It would provide users with continuous liquidity and enhanced financial flexibility without traditional trading hours limitations.
Notably, XRPL’s low fees, high throughput, and deep institutional ties make it an ideal platform for integrating tokenized RWAs like OUSG. Moreover, its native compliance features, including Decentralized Identifiers (DIDs) and on-chain credential management, provide robust regulatory adherence.
As part of its offerings, OUSG ensures institutional investors can access a safe, low-risk investment option. It boasts backing from the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
Other tokenized Funds on XRPL
Recall that in August 2024, OpenEden launched tokenized U.S. Treasury bills on XRPL, which marked a major step in integrating traditional financial assets with blockchain.
These tokens are backed by short-dated U.S. T-bills and reverse repurchase agreements and adhere to strict KYC and AML standards. Notably, Ripple invested $10 million in OpenEden’s TBILL tokens as part of its broader strategy to support tokenized assets.
Now, Ondo Finance has disclosed plans to pursue a similar initiative. According to the announcement, by bringing OUSG to XRPL, Ondo Finance is further pushing the boundaries of institutional DeFi and shaping the future of treasury management on the blockchain.
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Source: https://thecryptobasic.com/2025/01/28/xrp-ledger-welcomes-ondo-finances-tokenized-us-treasury-fund-backed-by-blackrocks-buidl/?utm_source=rss&utm_medium=rss&utm_campaign=xrp-ledger-welcomes-ondo-finances-tokenized-us-treasury-fund-backed-by-blackrocks-buidl