A key piece of financial infrastructure linking tokenized assets to traditional banking underwent a true cross-border test this week.
Ondo Finance said on Wednesday it had completed the first near-real-time cross-border redemption of a tokenized US Treasury fund together with JPMorgan’s blockchain platform Kinexys, payments giant Mastercard and Ripple.
The transaction settled in less than five seconds on the XRP Ledger and involved OUSG, Ondo’s tokenized US Treasury fund created for accredited investors and qualified buyers.
The process began with Ondo processing the swap on the XRP Ledger, after which Mastercard’s Multi-Token network sent the instructions to Kinexys and JPMorgan delivered the US dollars to Ripple’s bank account in Singapore.
The entire sequence occurred outside traditional banking windows, the type of cross-border settlement that typically takes one to three business days through correspondent banks.
“By connecting public blockchain infrastructure with interbank settlement avenues, Ondo, JPMorgan’s Kinexys, 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 vice president at RippleX, said the transaction shows that institutions can execute cross-border movements of tokenized assets as a single integrated flow rather than tying them together through legacy systems.
The pilot lands 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 processed more than $3 trillion in cumulative transactions, and tokenized deposit volumes at major banks totaled billions of dollars over the past year.
XRP and ONDO fell as much as 2% in the last 24 hours along with a broader pullback across the crypto market.
