XRP Ledger Lands Major Institutional Win as $670M Treasury Fund Goes Live

XRP Ledger has secured a significant institutional victory with the launch of Ondo Finance's $670 million tokenized U.S. Treasury fund, marking the first major Treasury product to go live on Ripple's blockchain platform.

Ondo Finance's OUSG (Ondo Short-Term U.S. Government Treasuries) is now operational on XRPL, enabling qualified institutional investors to trade tokenized Treasury securities around the clock using Ripple's RLUSD stablecoin for settlement, the companies said in a statement on Wednsday.

OUSG has established itself as one of the largest tokenized Treasury products in the market, with over $670 million in total value locked, competing directly with offerings from financial giants BlackRock and Franklin Templeton. The fund was the first tokenized security to achieve material adoption and now brings that institutional credibility to XRPL.

"Ondo's OUSG going live on the XRPL demonstrates that tokenized finance is no longer theoretical, it's maturing in real markets," said Markus Infanger, SVP of RippleX. "Institutions can now access high-quality assets like U.S. Treasuries on public blockchains, with the compliance and efficiency they need."

The integration showcases XRPL's institutional-grade infrastructure, leveraging the platform's native tokenization support, built-in decentralized exchange, and compliance features like Decentralized Identifiers (DIDs). For institutions, this means accessing Treasury securities without traditional banking hours constraints or legacy settlement delays.

RLUSD serves as the bridge asset for seamless minting and redemptions, with liquidity commitments from both Ripple and Ondo ensuring strong initial momentum. This setup allows qualified purchasers to convert in and out of OUSG using a stable settlement model designed for capital efficiency.

The launch comes as tokenized U.S. Treasuries have surpassed $7 billion in total value locked across all platforms, with adoption accelerating rapidly. According to the BCG tokenization report, the most meaningful adoption is occurring with low-risk, high-utility assets like Treasuries when paired with scalable infrastructure and compliant on/off ramps.

For institutional investors managing liquidity across jurisdictions, tokenized Treasuries on XRPL unlock new operational possibilities. Traditional capital markets often struggle with fragmented settlement cycles and idle cash buffers, but blockchain-based Treasury products enable near-instant fund redeployment and round-the-clock access while maintaining compliance standards.

The OUSG deployment validates XRPL's positioning as institutional-grade infrastructure for tokenized finance, Ripple said. With upcoming features including Multi-Purpose Tokens (MPTs), lending protocols, and Permissioned Domains, XRPL is building comprehensive tools for traditional finance migration.

"This represents progress in bringing trusted financial assets into a 24/7 market—enabling greater liquidity, operational efficiency, and faster access to capital," Infanger added.