A key piece of financial infrastructure linking tokenized assets to traditional banking services received a real cross-border test this week.
Ondo Finance announced on Wednesday that it had completed the first near real-time cross-border redemption of a tokenized US Treasury fund alongside JPMorgan’s blockchain platform Kinexys, payments giant Mastercard and Ripple.
The transaction settled in less than five seconds on the XRP Ledger and involved OUSG, Ondo’s US Treasury tokenized fund designed for accredited investors and qualified buyers.
The pipeline began with Ondo processing the redemption on the XRP Ledger, after which Mastercard’s multi-token network routed the instructions to Kinexys and JPMorgan delivered the US dollars to Ripple’s bank account in Singapore.
The entire sequence took place outside traditional bank tellers, the type of cross-border settlement that typically takes one to three business days through correspondent banks.
“By connecting public blockchain infrastructure to interbank settlement rails, Ondo, Kinexys by JPMorgan, Mastercard and Ripple are laying the foundation for 24/7 global markets that never close,” Ondo President Ian De Bode said in a statement.
Markus Infanger, senior vice president at RippleX, said the transaction shows that institutions can make cross-border movements of tokenized assets as a single integrated flow rather than stitching them together through existing systems.
The pilot comes as the Depository Trust & Clearing Corporation (DTCC) announced earlier this week that it would launch its own tokenization service later this year. JPMorgan’s Kinexys platform has now processed more than $3 trillion in cumulative transactions, with token deposit volumes at major banks reaching billions of dollars over the past year.
XRP and ONDO are down as much as 2% in the past 24 hours, alongside a broader pullback across the crypto market.
