JPMorgan, Mastercard, and Ripple Execute First Cross-Border Tokenized Treasury Settlement Using XRP Ledger

Ondo Finance announced that Ripple has successfully redeemed its Ondo Short-Term U.S. Government Treasuries (OUSG) holdings on the XRP Ledger and received a USD payout in Singapore. The transaction was facilitated through Mastercard and Kinexys by J.P. Morgan as part of a pilot conducted on May 6, 2025.

The pilot tested whether a tokenized fund redemption on a public blockchain could trigger an immediate bank-account payout across borders and institutions. Ondo emphasized that the transaction path operated outside traditional banking windows, ensuring faster settlement while maintaining compliance.

Key highlights of the pilot include:

• The XRP Ledger processed the OUSG redemption in under five seconds.
• The cash leg remained within regulated bank infrastructure, moving through Mastercard’s Multi-Token Network, Kinexys by J.P. Morgan, and J.P. Morgan’s correspondent banking network.
• The transaction separated the asset role of the XRP Ledger from the USD payout, which was initiated on Kinexys and delivered to Ripple’s Singapore bank account via J.P. Morgan’s rails.

Ondo described the transaction as the first near-real-time, cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. The redemption process involved multiple steps:

• Ondo processed the redemption request.
• Mastercard’s Multi-Token Network routed the fiat payout instruction, connecting the onchain redemption to bank settlement infrastructure.
• Kinexys by J.P. Morgan debited Ondo’s Blockchain Deposit Account.
• J.P. Morgan’s correspondent banking network delivered the USD proceeds to Ripple’s Singapore bank account.

The transaction structure demonstrates how the asset record, instruction layer, and fiat payout can be coordinated to eliminate manual processes after a tokenized fund redemption. The XRP Ledger’s ledger versions typically close every three to five seconds, supporting the feasibility of a fast asset leg. Ondo attributed the pilot’s processing time and first-of-its-kind status to its implementation.

Transaction Breakdown

Ondo launched its tokenized Treasury product on the XRP Ledger in June 2025, with minting and redemption support tied to Ripple’s RLUSD stablecoin. The pilot builds on this existing infrastructure, leveraging Ripple’s OUSG redemption tied to a cross-border payout route involving Mastercard and J.P. Morgan.

Kinexys participated in the pilot with prior experience in tokenized settlements. J.P. Morgan’s blockchain unit had previously completed a tokenized Treasury settlement test with Ondo and Chainlink in 2025, using a delivery-versus-payment structure that connected Kinexys Digital Payments to Ondo Chain testnet activity.