Tokenization platform Ondo Finance
ONDO$0.89662
has debuted its flagship U.S. treasury-backed token on XRP Ledger (XRPL), giving institutional investors new tools to manage cash on the blockchain.
Qualified purchasers can mint and redeem Ondo Short-Term U.S. Government Treasuries (OUSG) tokens around the clock using Ripple’s U.S. dollar stablecoin RLUSD, the press release said. Initial supply of the token on XRPL is $30 million to ensure liquidity, the firms said.
“This integration strengthens our commitment to providing reliable and composable infrastructure at the intersection of traditional finance and DeFi,” Ian De Bode, chief strategy officer at Ondo Finance, said in a statement.
The expansion follows Ondo’s announcement in January, targeting to go live in six months, CoinDesk reported then.
Tokenized Treasuries have spearheaded the rapidly growing real-world asset trend, which is bringing traditional financial instruments like bonds, funds and real estate onto blockchain rails. The market value of tokenized U.S. Treasuries mushroomed to $7.2 billion, up from $1.7 billion a year ago, according to rwa.xyz.
These products allow investors to park idle cash without leaving blockchain rails to earn a steady yield that’s independent from crypto markets, similar to a money market fund. Increasingly, they are also used as reserve assets for decentralized finance (DeFi) protocols and as collateral in trading and asset management.
OUSG with $693 million supply is the third largest of its kind following BlackRock’s BUIDL and Franklin Templeton’s BENJI, per rwa.xyz data.
The new offering also fits into XRP Ledger’s growing ambition to position itself as a hub for tokenized assets. This week, Guggenheim Treasury Services said it will issue Digital Commercial Paper on the network, while Dubai announced last month a tokenized real estate platform developed on XRPL as part of its $16 billion property tokenization goal.
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