29th January 2025 – (New York) Ondo Finance, a platform specialising in the tokenisation of real-world assets, has announced plans to launch its $185 million U.S. Treasury-backed token on Ripple’s XRP Ledger (XRPL). The move, revealed on Tuesday, aims to enhance institutional access to tokenized assets through the enterprise-focused blockchain.
The Ondo Short-Term US Government Treasuries (OUSG) token, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), enables qualified investors to mint and redeem tokens almost instantly using Ripple’s RLUSD stablecoin. The deployment on XRPL is expected to go live within six months, according to a blog post by Ondo Finance.
Both Ripple and Ondo Finance have committed seed investments to provide liquidity for the XRPL integration, though the size of the allocations remains undisclosed. Following the announcement, Ondo Finance’s governance token, ONDO, rose by 4%.
The tokenization of real-world assets, including bonds, credit instruments, and investment funds, has seen explosive growth, with the market for tokenized U.S. Treasury products quadrupling over the past year to $3.5 billion, per data from rwa.xyz. These assets offer faster settlement times and greater efficiency compared to traditional financial systems.
Markus Infanger, Senior Vice President of RippleX, highlighted the transformative potential of tokenized assets, stating, “The 24/7 intraday settlement enabled by assets like OUSG represents a paradigm shift in capital flow management, untethering transactions from traditional market hours and slow settlement processes.” He added that such solutions provide high-quality liquidity while improving accessibility for institutional investors.
The XRP Ledger, with over a decade of experience supporting cross-border payments, digital asset custody, and stablecoin issuance, is well-suited to real-world asset tokenization and institutional decentralised finance (DeFi). Enhanced by compliance tools and upcoming innovations such as Multi-Purpose Tokens (MPTs) and Permissioned Domains, the XRPL is positioned to become a cornerstone for institutional-grade financial solutions.
This integration marks a significant step for Ripple in bridging traditional finance with blockchain-based systems. Institutions will gain access to efficient treasury management and high-quality yield opportunities within a secure, decentralised framework, further advancing the adoption of tokenized assets.
Brad Garlinghouse, CEO of Ripple Labs, also shared his vision for a U.S. digital asset reserve, advocating for a multichain approach that includes XRP alongside other cryptocurrencies. His comments came amid speculation about a potential national digital asset stockpile under President Donald Trump’s administration.
Meanwhile, XRP has experienced significant market activity, with its price recently surging to $3.13 before a 10% drop during the DeepSeek crash. Analysts predict a bullish outlook, with projections targeting $4 in the short term and as high as $14 by 2025, driven by Ripple’s expanding ecosystem, favourable regulatory developments, and advancements in tokenized finance.
