- The Ondo Finance team creates institutional OUSG on XRP.
- Tokenized U.S. Treasuries enable 24/7 minting with RLUSD stablecoin.
- OUSG is backed by BlackRock’s BUIDL fund, ensuring compliance.
- XRP Ledger offers low fees and high throughput for tokenized assets.
In a first move for institutional decentralized finance, Ondo Finance has declared the launch of its tokenized U.S. Treasury asset, OUSG, on the XRP Ledger. The deployment will allow qualified investors to access low-risk, short-dated Treasury bills that can be minted and redeemed instantly and 24/7 in Ripple RLUSD stablecoin. The step integrates conventional finance with blockchain and provides better liquidity and compliance.
The OUSG fund provides access to short-term U.S. treasuries and is sponsored by BlackRock’s USD Institutional Digital Liquidity Portfolio. It has already surpassed $670 million in total value locked across various blockchains, and $30 million is already on the XRP Ledger. The platform is compliant with institutional demands, given that it has strict Know Your Customer and Anti-Money Laundering policies.
Institutional Access to Tokenized Treasuries
The tokenized U.S. Treasuries transactions are available through the XRP Ledger infrastructure, which offers the throughput and low fees. Its native compliance tools, like Decentralized Identifiers, improve compliance, and it is suitable for institutional investors. By using the OUSG incorporation, settlements are possible in real-time without following the conventional banking hours and speed.
The significance of this launch was highlighted by Katie Wheeler, the VP of partnerships at Ondo Finance. She went on: The integration will bring a regulated, yield-GENERATING product to an institutionally trusted blockchain and open the potential of sophisticated on-chain capital markets. The collaboration with Ripple means that OUSG will not lack liquidity, at least in the beginning, which is what will enable adoption.
RLUSD stablecoin minted by Ripple is U.S. dollar-pegged and facilitates the constant availability of OUSG. This dimension grants investors everlasting financial freedom, allowing them to manage their portfolios without being constrained by time. The reliability of the XRP Ledger also enables scalable tokenization of real-world assets.
Growing Market for Tokenized Assets
The tokenized U.S. Treasuries market is currently becoming significant, and the total value of the U.S. Treasuries locked in worldwide is equal to $7 billion. Ondo Finance has launched on the XRP Ledger, already successfully deployed on Ethereum and Solana. The OUSG product on the platform is returning 4.16 percent annual percentage yield and a token price of 109.76 dollars, which is attractive to risk-averse users.
Markus Infanger, RippleX’s senior vice president, emphasized the potentially revolutionary nature. He continued: “The immediate settlement of tokenized assets like OUSG is a game changer in the management of capital flows in that it brings stability and access to blockchain markets.” The collaboration upgrades the XRP Ledger to an institutional-quality financial services venue.
The launch comes as part of Ripple’s tokenized asset investment in the past, including its 10 million investment in TBILL tokens on OpenEden in 2024. The XRP Ledger has features such as its native decentralized exchange and future Multi-Purpose Tokens, which make it even more Suitable in the tokenization of real-world assets.
The Ondo Finance project belongs to the overall trend of digitalization of traditional financial instruments. Analysts project that the demand for efficiency and transparency will grow the market of tokenized assets to 16 trillion dollars by 2030.
