Ondo Finance Brings $185M Tokenized U.S. Treasury Offering to XRP Ledger

Ondo Finance, a prominent DeFi platform, has expanded its tokenized U.S. Treasury offering, worth $185 million, to Ripple’s XRP Ledger. The move enables institutional investors to mint and redeem Ondo’s OUSG tokens seamlessly using Ripple’s RLUSD stablecoin.

Ondo Finance’s  Bold Statement

“Ondo Finance will utilize Ondo Short-Term US Government Treasuries (OUSG), its tokenized fund for US Treasury, on the XRP Ledger (XRPL), which is a decentralized layer-1 blockchain,” Ondo explained its statement.

This deployment has been said to go live within the next six months.

It will bring OUSG tokens to XRPL’s broad institutional user base. Introducing a composable and compliance-first asset to a blockchain built for financial institutions.

Advantages of This Partnership

The partnership between Ondo Finance and Ripple’s XRP Ledger (XRPL) offers several key advantages for institutional investors and the broader blockchain ecosystem.

24/7 Minting and Redemption of OUSG Tokens: By using Ripple’s RLUSD stablecoin, institutional investors can mint and redeem Ondo’s tokenized U.S. Treasury (OUSG) tokens around the clock. This removes the limitations of traditional banking hours, providing greater flexibility and operational efficiency.

Enhanced speed and low transaction costs: XRPL is known for its near-instant settlement and low transaction fees. This ensures that investors can transact quickly and cost-effectively, making the platform highly attractive for large-scale financial operations.

This partnership will also offer improved liquidity for tokenized assets.

The Partnership’s Implications on the Crypto Market

This integration marks a significant step in the evolution of tokenized real-world assets (RWAs) on blockchain networks. The XRP Ledger, known for its low-cost and high-speed transactions, provides a robust platform for Ondo Finance to cater to the growing demand for tokenized Treasury.

This integration establishes an avenue for institutional DeFi and advanced cash management solutions, bringing DeFi and traditional finance closer than ever.