Ondo Finance Launches $185M Tokenized U.S. Treasury Offering on XRP Ledger

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The world of decentralized finance (DeFi) is undergoing a seismic shift as real-world assets (RWA) increasingly move onto blockchain networks. At the forefront of this transformation, Ondo Finance has announced the deployment of its $185 million tokenized U.S. Treasury product—OUSG (Ondo Short-Term US Government Treasuries)—onto the XRP Ledger, marking a pivotal expansion into enterprise-grade financial infrastructure.

This strategic integration positions OUSG as one of the most accessible and efficient institutional-grade digital assets on a high-performance blockchain. Designed for qualified investors, the token enables 24/7 minting and redemption through RLUSD, Ripple’s U.S. dollar-pegged stablecoin, offering near-instant settlement without reliance on traditional banking hours or intermediaries.

Bridging Traditional Finance with Blockchain Innovation

OUSG is uniquely backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), one of the most trusted institutional-grade money market funds in the digital asset space. This backing ensures that each OUSG token represents a claim on high-quality, short-term U.S. government securities—providing investors with low-risk exposure to American Treasury yields in a fully on-chain format.

Unlike legacy financial systems that operate within rigid market hours and multi-day settlement cycles, OUSG leverages blockchain efficiency to deliver intraday liquidity and continuous settlement. This breakthrough is especially valuable for global institutions seeking real-time capital mobility across borders.

“The 24/7 intraday settlement enabled by tokenized assets like OUSG marks a transformative shift in capital flow management,” said Markus Infanger, Senior Vice President at RippleX, the development arm behind the XRP Ledger. “These low-risk, high-quality liquidity options not only provide better accessibility for investors but also introduce greater stability to blockchain-based markets.”

👉 Discover how institutional investors are unlocking 24/7 liquidity with blockchain-based treasury tokens.

Why the XRP Ledger? Speed, Scalability, and Enterprise Focus

While OUSG was previously available on Ethereum, Polygon, and Solana, its expansion to the XRP Ledger (XRPL) underscores a growing trend: enterprises are prioritizing networks built for performance, cost-efficiency, and regulatory clarity.

The XRP Ledger stands out due to its:

By choosing XRPL, Ondo Finance aligns itself with a network already adopted by central banks, payment providers, and financial institutions exploring programmable money solutions.

Both Ripple and Ondo Finance have committed seed investments to bootstrap liquidity for OUSG on the XRP Ledger. Although specific investment amounts were not disclosed, this joint commitment signals strong confidence in the long-term viability of tokenized treasuries within enterprise DeFi ecosystems.

The Rise of Tokenized Real-World Assets

Tokenized real-world assets (RWA) represent one of the most promising frontiers in blockchain adoption. By digitizing traditionally illiquid or slow-moving assets—such as government bonds, real estate, or private credit—blockchain technology unlocks unprecedented levels of transparency, accessibility, and automation.

U.S. Treasury tokens have led this charge. According to data from rwa.xyz, the tokenized U.S. Treasury market has more than quadrupled over the past year, now exceeding $3.5 billion in total value locked (TVL). This explosive growth reflects growing demand from both retail and institutional players seeking yield-bearing, low-volatility assets in the crypto economy.

OUSG joins OpenEden’s TBILL as the second tokenized treasury product available on the XRP Ledger, reinforcing the network’s emerging role as a hub for institutional-grade financial instruments.

How OUSG Works: A Seamless Investor Experience

For qualified investors, interacting with OUSG on the XRP Ledger is designed to be seamless:

  1. Minting: Investors deposit RLUSD (Ripple’s stablecoin) into the OUSG smart contract and receive an equivalent amount of OUSG tokens.
  2. Holding: Each OUSG token accrues yield derived from underlying U.S. Treasury holdings via BUIDL.
  3. Redemption: At any time, holders can burn OUSG tokens and receive RLUSD back—enabling round-the-clock liquidity.

This process eliminates intermediaries, reduces counterparty risk, and operates autonomously through audited smart contracts—ensuring trustless execution.

👉 Learn how blockchain is reshaping treasury investments with instant-settlement tokens.

Market Response and Governance Impact

The announcement sparked immediate market interest. ONDO, Ondo Finance’s governance token, rose 4% following the news—a reflection of investor confidence in the platform’s expanding ecosystem and cross-chain strategy.

As more institutions explore blockchain-based alternatives to traditional custody and settlement systems, projects like Ondo Finance are setting new standards for compliance, transparency, and operational efficiency.

Frequently Asked Questions (FAQ)

What is OUSG?

OUSG (Ondo Short-Term US Government Treasuries) is a tokenized fund that provides exposure to short-term U.S. Treasury securities. It is backed by BlackRock’s BUIDL fund and allows investors to earn yield on-chain with 24/7 redeemability using RLUSD.

Is OUSG available to retail investors?

Currently, OUSG is available only to qualified or accredited investors due to regulatory requirements surrounding institutional money market funds like BUIDL.

How does OUSG differ from other stablecoins?

Unlike algorithmic or fiat-collateralized stablecoins, OUSG is not designed to maintain a strict $1 peg. Instead, it accrues yield over time and may fluctuate slightly in value based on interest accruals and market conditions.

Why is the XRP Ledger significant for tokenized assets?

The XRP Ledger offers fast, low-cost transactions with built-in compliance features and native asset support—making it ideal for enterprise use cases such as cross-border payments and tokenized securities.

When will OUSG go live on the XRP Ledger?

The deployment is expected to go live within the next six months, according to Ondo Finance’s official blog post.

Can I redeem OUSG for U.S. dollars directly?

Redemption occurs in RLUSD (Ripple’s U.S. dollar stablecoin). From there, RLUSD can be converted to fiat through supported exchanges or financial platforms.

👉 Explore how next-gen investors are leveraging tokenized treasuries for yield and liquidity.

Looking Ahead: The Future of On-Chain Finance

As regulatory frameworks evolve and infrastructure matures, tokenized real-world assets are poised to become a cornerstone of digital finance. With major players like BlackRock, Ripple, and now Ondo Finance driving innovation, the convergence of traditional finance and DeFi is no longer theoretical—it’s happening in real time.

OUSG’s expansion to the XRP Ledger isn’t just a technical upgrade; it’s a signal that institutional capital is ready for blockchain-native financial tools that offer speed, transparency, and continuous access.

For forward-thinking investors and institutions alike, the era of 24/7 global capital markets—powered by tokenization—is officially underway.

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