Ondo Finance to Launch Tokenized US Treasury Fund on XRP Ledger

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The world of decentralized finance (DeFi) continues to evolve with the integration of real-world assets (RWA), and one of the most anticipated developments in 2025 is Ondo Finance’s plan to launch its tokenized U.S. Treasury fund, OUSG, on the XRP Ledger (XRPL). This strategic move positions XRPL as a leading blockchain for institutional-grade financial products and marks a significant milestone in bridging traditional finance (TradFi) with blockchain innovation.

Expanding Institutional Reach with OUSG on XRPL

Ondo Finance has announced plans to deploy the Ondo Short-Term US Government Treasuries (OUSG) fund on the XRP Ledger within the next six months. This decision underscores XRPL’s growing appeal among institutional investors seeking secure, compliant, and yield-generating digital assets.

By leveraging XRPL’s robust infrastructure, OUSG aims to close the gap between DeFi and TradFi, offering institutions seamless access to high-quality U.S. Treasury-backed investments directly on-chain. The collaboration between Ondo Finance and Ripple will ensure strong initial liquidity for OUSG, accelerating adoption of tokenized real-world assets on a decentralized network.

“This integration opens new pathways for institutional DeFi and advanced cash management solutions, bringing decentralized and traditional finance closer than ever before.”
— Official statement from Ondo Finance

OUSG is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), reinforcing its credibility and appeal to conservative investors. The product adheres to strict KYC/AML compliance standards, combining security, regulatory alignment, and competitive yields in a single on-chain solution.

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Seamless Integration with RLUSD and 24/7 Liquidity

One of the key advantages of launching OUSG on XRPL is its native integration with Ripple’s RLUSD stablecoin. This synergy enables 24/7 minting and redemption of OUSG tokens, providing unmatched liquidity and operational flexibility compared to traditional financial markets that operate on fixed schedules.

This round-the-clock accessibility allows global institutions to manage treasury holdings efficiently, respond to market movements in real time, and optimize yield strategies without being constrained by banking hours or settlement delays.

XRPL’s proven track record in cross-border payments, digital asset custody, and stablecoin issuance makes it a natural fit for hosting regulated financial instruments. With over a decade of development, the ledger supports advanced features such as Multi-Purpose Tokens (MPTs) and built-in compliance tools—critical components for managing tokenized securities at scale.

Strengthening XRPL as a Hub for Tokenized Real-World Assets

Recent developments have solidified XRPL’s position as a premier platform for RWA tokenization:

These milestones reflect a broader trend: financial institutions are increasingly adopting blockchain technology to improve efficiency, transparency, and accessibility. By supporting compliant, yield-bearing assets like OUSG, XRPL is emerging as a trusted infrastructure for the future of finance.

Ondo Finance’s Strategic Push into Institutional Markets

Ondo Finance has been at the forefront of integrating real-world assets into blockchain ecosystems. Nine months ago, the firm launched an RWA payment network in collaboration with Zebec Network, further cementing its role as a bridge between traditional capital markets and decentralized platforms.

Additionally, Ondo transferred $95 million into BlackRock’s tokenized fund, signaling a strong commitment to providing high-quality, on-chain investment options backed by reputable financial institutions.

The deployment of OUSG on XRPL exemplifies how blockchain technology is reshaping institutional finance. It empowers organizations to:

With a secure infrastructure, institutional-grade compliance, and a rapidly expanding ecosystem, XRPL is establishing itself as a critical player in the tokenized finance landscape.

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Core Keywords Driving Adoption

This development highlights several core trends shaping the future of digital finance:

These keywords reflect growing search intent around secure, yield-bearing digital assets and the platforms enabling their growth.

Frequently Asked Questions (FAQ)

Q: What is OUSG?
A: OUSG (Ondo Short-Term US Government Treasuries) is a tokenized fund that provides exposure to short-term U.S. Treasury securities. It offers investors a secure, yield-generating asset backed by real-world government debt.

Q: Why is Ondo Finance choosing XRPL for OUSG?
A: XRPL offers strong institutional support, built-in compliance features, fast settlement times, and native stablecoin integration via RLUSD. These attributes make it ideal for deploying regulated financial products like OUSG.

Q: Is OUSG available to retail investors?
A: While primarily designed for institutional use, eligible accredited investors may also participate depending on jurisdiction and compliance requirements.

Q: How does RLUSD enhance OUSG’s functionality?
A: RLUSD enables 24/7 minting and redemption of OUSG tokens, ensuring continuous liquidity and eliminating downtime associated with traditional market hours.

Q: What backs the value of OUSG?
A: OUSG is backed by shares in BlackRock’s BUIDL fund, which invests directly in U.S. Treasury securities and cash equivalents, ensuring high credit quality and low volatility.

Q: Does this affect ONDO token price?
A: Despite the announcement, ONDO’s price remains relatively stable. At the time of writing, it trades around $1.31, reflecting only minor upward movement post-announcement.

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