Ripple Strengthens U.S. Operations with Key Licenses in Texas and New York

Ripple Labs has secured Money Transmitter Licenses (MTLs) in Texas and New York, representing a major step in enhancing its cross-border payment solutions. 

These licenses strengthen Ripple’s position in two of the most influential U.S. markets and underscore the company’s dedication to regulatory compliance and innovation in the payments sector.

The announcement, made on January 27, highlights the increasing demand for real-time, cost-efficient global payment solutions from banks and cryptocurrency businesses in both states. “We’re continuing to see more interest from financial institutions and crypto businesses that want to unlock the benefits of blockchain for faster and 24/7 cross-border payments,” said Joanie Xie, Ripple’s Managing Director for North America.

Expanding U.S. Reach Through Strategic Licensing

With these approvals, Ripple now holds over 55 Money Transmitter Licenses across the United States. The addition of Texas and New York—states renowned for their stringent regulatory standards—positions Ripple to tap into thriving financial ecosystems. Texas, with its flourishing cryptocurrency mining sector, and New York, a global hub for financial services, offer Ripple unique opportunities to expand its network and services.

The licenses also align with Ripple’s broader strategy of global expansion. The company facilitates transactions across more than 90 markets, processing $70 billion in payments last year alone—double the previous year’s volume. Ripple’s robust licensing portfolio extends beyond U.S. borders, including a Major Payment Institution License in Singapore, Virtual Asset Service Provider registrations in Ireland and the Cayman Islands, and preliminary approvals in Dubai.

Ripple’s progress comes amidst ongoing legal challenges. The firm’s protracted battle with the Securities and Exchange Commission (SEC) has been a defining narrative for the company. In 2024, Ripple was fined $125 million for institutional XRP sales deemed in violation of securities laws. Brad Garlinghouse, showing Frustration, at one point condemned the approach Gensler had taken throughout his tenure on a social media post.

Source: Brad on X

Innovation and Regulatory Milestones

Beyond compliance, Ripple’s innovation pipeline continues to grow. The company plans to integrate its RLUSD stablecoin, approved by the New York Department of Financial Services, into its payment platform later this year.

This move is expected to further streamline cross-border payments and enhance service offerings for its clients.

Ondo Finance Brings $185M Treasury-Backed Token to the XRP Ledger

Ondo Finance, a platform specializing in tokenizing real-world assets (RWA), has announced plans to launch its $185 million U.S. Treasury-backed token, OUSG, on the XRP Ledger (XRPL). This move aims to broaden institutional access to the offering, the companies revealed on Tuesday.

The Ondo Short-Term US Government Treasuries (OUSG) token is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). It allows qualified investors to mint and redeem tokens almost instantly using Ripple’s RLUSD stablecoin. According to Ondo Finance, the integration with XRPL is expected to go live within six months.

Ripple, a major contributor to XRPL, and Ondo Finance have provided seed funding for initial liquidity on the network, although the size of these investments remains undisclosed.

XRP price was up 8% on the news. Source: XRPLX

Tokenization Accelerates on XRPL

Tokenizing real-world assets like bonds, credit instruments, and investment funds is transforming finance by offering faster settlement times and improved efficiency compared to traditional systems. U.S. Treasury-backed tokenized products have led this trend, growing fourfold in the past year to reach a $3.5 billion market, according to data from rwa.xyz.

“This 24/7 intraday settlement made possible by tokenized assets like OUSG marks a revolutionary shift in capital flow management, eliminating delays caused by traditional market hours,” said Markus Infanger, Senior Vice President of RippleX, Ripple’s XRPL-focused division. “These high-quality, low-risk liquidity solutions provide better accessibility for investors and stability for blockchain-based markets.”

The partnership announcement. Source: Ondo Finance

Why XRPL is a Perfect Fit for OUSG

The XRP Ledger, with its decade-long history of facilitating cross-border payments, digital asset custody, and stablecoin issuance, offers an enterprise-grade foundation for RWA tokenization and institutional DeFi. Its advanced compliance features, including decentralized identifiers (DIDs) and price oracles, along with upcoming innovations like Multi-Purpose Tokens (MPTs) and Permissioned Domains, make it an ideal platform for institutional finance.

By launching OUSG on the XRPL, Ondo Finance delivers institutional-grade assets directly to organizations, enabling efficient treasury management, portfolio optimization, and access to high-quality yield within a secure, decentralized environment.

Market Impact

Following the announcement, ONDO, the governance token of Ondo Finance, saw a 4% increase. The integration of OUSG with XRPL not only strengthens the XRP Ledger’s position as a leader in institutional financial solutions but also reinforces the growing adoption of blockchain technology in traditional finance.

The Big Picture

The partnership between Ondo Finance and XRPL underscores the growing synergy between decentralized finance and traditional finance. As tokenization of assets like U.S. Treasuries becomes mainstream, platforms like XRPL are positioned to lead the charge in bridging these two worlds. This move not only highlights the potential of blockchain to revolutionize institutional financial management but also cements XRPL’s reputation as a cornerstone for tokenized finance.