Ripple and Ondo Finance Partner to Tokenize U.S. Treasuries
- Ripple and Ondo Finance collaborate to tokenize U.S. Treasuries on XRPL.
- Targeted at institutional DeFi investors using Ripple’s RLUSD stablecoin.
- $670 million in Treasuries now accessible, boosting XRPL’s DeFi infrastructure.
Ripple and Ondo Finance collaborate to tokenize U.S. Treasuries on the XRP Ledger, aiming to enhance institutional access to decentralized finance.
This partnership signifies XRPL’s emerging role in real-world asset tokenization, potentially transforming market dynamics and attracting institutional interest.
Ripple has partnered with Ondo Finance to launch tokenized U.S. Treasuries on the XRP Ledger (XRPL). This initiative aims to provide institutional investors access to short-term U.S. Treasuries through Ondo’s OUSG token. Ripple’s RLUSD stablecoin facilitates this process.
Ripple, led by CEO Brad Garlinghouse and CTO David Schwartz, and Ondo Finance, founded by Nathan Allman, are driving the effort. Ripple focuses on expanding institutional finance while Ondo Finance has a history in asset tokenization. They aim to capture a share of the potential $19 trillion institutional DeFi market by 2033.
The partnership makes over $670 million in U.S. Treasuries accessible through OUSG tokens on XRPL. This could accelerate the adoption of institutional DeFi. The tokenization effort signifies a shift toward on-chain financial products, emphasizing stablecoin and compliance.
Nathan Allman, Founder & CEO, Ondo Finance, “We’re excited to bring OUSG to XRPL, unlocking frictionless, on-chain access to US Treasuries for institutional investors.”
The financial implications are significant, with XRPL poised to become a hub for real-world asset tokenization. This move could provide 24/7 settlement, programmable compliance, and on-chain composability advantages over traditional finance systems, according to experts.
Historical comparisons highlight other tokenizations such as BlackRock’s on Ethereum. Such initiatives have drawn interest and scrutiny, suggesting increased regulatory attention may follow. Ripple’s and Ondo’s community feedback has been positive, with expectations for enhanced liquidity and integration with traditional finance.
