A Secure and Compliant Yield-Bearing Asset Backed by U.S. Treasuries Is Launching on the XRP Ledger

In a move that brings traditional finance closer to blockchain networks, Ondo Finance will be launching its tokenized U.S. Treasury fund, Ondo Short-Term U.S. Government Treasuries (OUSG), on the XRP Ledger.

In a move that brings traditional finance closer to blockchain networks, Ondo Finance will be launching its tokenized U.S. Treasury fund, Ondo Short-Term U.S. Government Treasuries (OUSG), on the XRP Ledger.

The development marks a key step in integrating institutional assets and investment products within the blockchain sphere. Ondo Finance is planning to launch the fund, fully compliant with U.S. regulations, within the next six months.

The development marks a key step in integrating institutional assets and investment products within the blockchain sphere. Ondo Finance is planning to launch the fund, fully compliant with U.S. regulations, within the next six months.

Institutions will be able to gain access to a yield-bearing asset backed by U.S. Treasuries, available 24/7 throughout the year. The fund will be offered in RLUSD, rendering it instantly accessible to a broad range of institutional investors.

Institutions will be able to gain access to a yield-bearing asset backed by U.S. Treasuries, available 24/7 throughout the year. The fund will be offered in RLUSD, rendering it instantly accessible to a broad range of institutional investors.

Minting and redemption of the OUSG tokens will be seamless, in contrast to traditional markets that operate within defined hours. This structure provides optimal liquidity and convenience for institutional participants.

To facilitate a smooth launch, Ripple has committed to providing initial liquidity for the OUSG fund, encouraging early adoption among institutional investors.

To facilitate a smooth launch, Ripple has committed to providing initial liquidity for the OUSG fund, encouraging early adoption among institutional investors.

This partnership aligns closely with Ripple’s broader vision of introducing real-world assets (RWAs) onto the XRP Ledger, expanding its usability for enterprise-class financial operations.

XRPL’s Built-In Advantages

The XRPL’s low cost, high throughput, decentralized identifiers (DIDs), and on-chain management of credentials provide a robust foundation for OUSG’s operations. These regulation-compliant capabilities are designed to meet the stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements set by regulators.

Moreover, OUSG is an institutional product backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), showcasing the low-risk investment vehicles available on the XRPL. This association adds a layer of credibility and aligns the initiative with investor expectations for safety and performance.

“This is a meaningful step for tokenized finance,” a spokesperson for Ondo Finance said. “We’re bringing the stability of U.S. Treasuries to a network built for speed, transparency, and compliance.”

The move follows Ripple’s previous $10 million investment in OpenEden’s tokenized Treasury Bill (TBILL) initiative on XRPL back in August. With XRPL now hosting multiple tokenized Treasury assets, it is rapidly establishing itself as a leading blockchain platform for regulated DeFi solutions.