Ripple Takes Over US Treasuries with JPMorgan...XRP Ledger Shakes Up Bank Payment Networks

▲ XRP/AI-generated image

JPMorgan and Mastercard have completed the first cross-border, interbank redemption settlement of a tokenized U.S. Treasury fund, leveraging Ripple's XRP Ledger and interbank payment networks. The fact that major traditional financial institutions and blockchain infrastructure have jointly experimented with a real-time settlement structure makes the trend of real-world asset tokenization entering the mainstream even more apparent.

Cointelegraph reported on the 7th that JPMorgan and Mastercard, in collaboration with Ondo Finance and Ripple, completed a pilot transaction for the redemption of a tokenized U.S. Treasury fund. In this transaction, Ondo Finance's blockchain tokenization platform redeemed US Ondo Short-Term US Government Treasuries (OUSG) funds from Ripple on the XRP Ledger. Subsequently, Mastercard's Multi-Token Network transmitted payment instructions to JPMorgan's blockchain platform Kinexys, which then paid U.S. dollars into Ripple's Singapore bank account.

Ondo Finance announced on Wednesday, "For the first time, a public blockchain and global banking infrastructure jointly settled a cross-border transaction of a tokenized fund in real-time." This pilot demonstrates the collaborative trend between cryptocurrency companies and traditional financial institutions to build faster and cheaper global payment and settlement systems that are not constrained by bank operating hours.

This OUSG transaction is an extension of a previous pilot conducted by JPMorgan and Ondo Finance in May 2025. At that time, the same tokenized U.S. Treasury fund was transferred between a public blockchain and a permissioned blockchain network. Major Wall Street institutions are focusing on real-world asset tokenization from the perspective that various assets such as stocks, bonds, money market funds, and real estate can be tokenized.

According to RWA.xyz data, the on-chain real-world asset tokenization market, excluding stablecoins, currently exceeds $31.1 billion. Boston Consulting Group estimated in 2022 that the tokenization market could grow to $16 trillion by 2030, while McKinsey & Co. presented a more conservative forecast of $2 trillion for the same period. Intercontinental Exchange announced last January its plan to launch a tokenization platform that supports 24-hour trading and immediate settlement of stocks and exchange-traded funds using a blockchain-based back-office processing system.

However, regulatory frameworks remain a key challenge for the expansion of the tokenization market. The International Monetary Fund pointed out in an April report that tokenization could shift risks from the banking system to shared ledgers and smart contract code, making intervention more difficult in stress situations. Kevin O’Leary stated at Consensus Miami 2026 on Wednesday that large-scale capital will not be tokenized until the U.S. cryptocurrency market structure bill is passed and meets Securities and Exchange Commission regulations. O'Leary said, "When that happens, everything will change."

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