The XRP Ledger (XRPL) is set to welcome a tokenized version of short-term U.S. treasuries offered by Ondo Finance, according to a Tuesday announcement.
Investors will be able to redeem Ondo Finance’s OUSG token with the help of Ripple’s recently launched RLUSD stablecoin.
The latest announcement comes after the company allocated $10 million to tokenized T-bills issued by OpenEden last year. Ripple has now expanded on this investment by committing to provide initial liquidity for the OUSG token on the XRP Ledger.
Ondo Finance launched the tokenized Treasury offering in early 2023.
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As of now, the vast majority of the OUSG portfolio is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
The BUIDL fund, which is backed by short-term bonds, was introduced last March in collaboration with tokenizing platform Securitize. In November, BlackRock expanded beyond Ethereum, announcing support for several more blockchains.
As of now, the OUSG token has a total of $184.08 million in total value locked (TVL).
The token is currently available on Ethereum, Polygon, and Solana. The XRPL integration is expected to take place over the next six months.
Tokenization has emerged as one of the key areas of focus for Ripple, according to the recent statements made by the company’s executives.
Earlier this month, Monica Long, president at Ripple, noted that a slew of major banks have already piloted tokenized asset projects. Some of them appear to be on track to debut market-ready offerings as soon as this year.
Source: https://u.today/xrp-ledger-to-welcome-tokenized-us-treasury-offering-backed-by-blackrock-fund