Mastercard, Kinexys by JPMorgan, Ripple and Ondo Finance said they completed the first near real-time cross-border, cross-bank redemption of tokenized U.S. Treasuries linking public blockchain infrastructure directly with traditional banking rails. The pilot connected Ripple’s XRP Ledger with JPMorgan’s correspondent banking infrastructure through Mastercard’s Multi-Token Network, enabling tokenized Treasury settlement in under five seconds.
The transaction involved Ripple redeeming tokenized U.S. Treasury assets issued through Ondo Finance’s Ondo Short-Term U.S. Government Treasuries Fund, or OUSG, on the XRP Ledger public blockchain. Ondo then initiated fiat payout instructions through Mastercard’s Multi-Token Network, which routed settlement instructions to Kinexys by JPMorgan for final U.S. dollar delivery through traditional correspondent banking systems.
According to the companies, the transaction occurred outside normal banking hours and completed substantially faster than conventional cross-border settlements, which typically require one to three business days through correspondent banking networks.
The pilot represents one of the most significant integrations to date between public blockchain-based tokenized assets and institutional banking infrastructure. Analysts said the transaction demonstrates how blockchain-native settlement systems and legacy financial rails may increasingly operate together rather than as competing systems.
“This milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows,” Ondo Finance President Ian De Bode said in a statement announcing the pilot.
Tokenized Treasury Market Continues Institutional Expansion
The transaction arrives amid accelerating institutional adoption of tokenized real-world assets, particularly tokenized U.S. Treasury products. The tokenized Treasury market has expanded rapidly over the past year as asset managers, banks and blockchain firms push to move traditional financial products onto blockchain infrastructure.
According to industry estimates cited in market reports, tokenized U.S. Treasuries surpassed $12 billion in market value earlier this year, while the broader tokenized real-world asset market grew more than 250% over the past 15 months.
The pilot specifically addressed one of the largest operational bottlenecks within tokenized finance: redemption and settlement infrastructure. While tokenized securities can trade continuously on blockchain networks, the fiat settlement layer often still depends on manual banking processes, wire systems and restricted operating hours.
Under the pilot framework, the XRP Ledger processed the asset leg of the transaction while Kinexys by JPMorgan executed fiat settlement and onward correspondent banking instructions. Mastercard’s Multi-Token Network acted as the interoperability layer coordinating communication between blockchain infrastructure and banking systems.
Markus Infanger, senior vice president at RippleX, said the transaction demonstrated how institutions could execute cross-border transfers “as a single integrated flow” rather than relying on disconnected settlement systems.
The transaction also reinforced XRP Ledger’s growing role in institutional tokenization discussions after years of limited adoption among large financial firms compared with Ethereum-based infrastructure. Analysts noted the pilot placed XRP Ledger directly into an institutional settlement architecture involving one of the world’s largest banks and one of the largest global payment networks.
24/7 Settlement Push Accelerates Across Wall Street
The pilot reflects a broader industry push toward continuous financial market infrastructure capable of operating outside traditional banking windows. Major institutions including BlackRock, DTCC, BNY, Franklin Templeton and JPMorgan have all expanded tokenization initiatives tied to Treasuries, deposits, collateral and securities settlement over the past year.
JPMorgan’s blockchain division, Kinexys, has already processed more than $3 trillion in cumulative transaction volume, according to figures cited in reports surrounding the pilot.
Mastercard executive Raj Dhamodharan said the company’s Multi-Token Network is designed to provide interoperability and coordination between tokenized assets and traditional fiat systems, enabling institutional blockchain transactions to operate within existing banking frameworks.
Analysts said the pilot could become a blueprint for future institutional settlement systems where tokenized assets move across public blockchains while regulated banking networks continue handling fiat settlement and compliance requirements. The architecture may also support future expansion into tokenized bonds, money market funds, stablecoins and cross-border securities settlement.
