A key piece of financial infrastructure that stitches tokenized assets into traditional banking got a real cross-border test this week.
Ondo Finance said on Wednesday it had completed the first near-real-time cross-border redemption of a tokenized U.S. treasury fund alongside JPMorgan blockchain platform Kinexys, payments giant Mastercard and Ripple.
The transaction was settled in under five seconds on the XRP Ledger and involved OUSG, Ondo’s tokenized US Treasury fund built for accredited investors and qualified buyers.
The pipeline started with Ondo processing the redemption on the XRP Ledger, then Mastercard’s Multi-Token Network sent the instructions to Kinexys, and JPMorgan delivered the US dollars to Ripple’s Singapore bank account.
The entire sequence happened outside traditional banking windows, the kind of cross-border settlement that typically takes one to three business days through correspondent banks.
“By connecting public blockchain infrastructure with 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 VP at RippleX, said the transaction shows that institutions can run cross-border tokenized asset movements as a single integrated flow instead of stitching them together through legacy systems.
The pilot comes as the Depository Trust & Clearing Corporation (DTCC) said earlier this week that it would launch its own tokenization service later this year. JPMorgan’s Kinexys platform has now processed over $3 trillion in cumulative transactions, with tokenized deposit volumes across major banks moving into billions of dollars over the past year.
XRP and ONDO fell as much as 2% in the last 24 hours alongside a broader pullback across the crypto market.
