Ripple, Ondo Finance, Mastercard and Kinexys by J.P. Morgan have completed a pilot transaction connecting the XRP Ledger with interbank settlement rails, marking a notable test of how tokenized assets can be redeemed across public blockchain infrastructure and global bank networks. The transaction involved a redemption of Ondo’s tokenized US Treasury product, OUSG, with the asset leg processed on XRPL and the fiat settlement routed through Mastercard and J.P. Morgan infrastructure.
Ondo said the pilot represents the first near real-time cross-border, cross-bank redemption of a tokenized US Treasury fund. The transaction was designed to show how tokenized fund redemptions can move beyond isolated onchain transfer activity and connect directly with traditional banking systems used for cross-border money movement.
According to Ondo, Ripple redeemed a portion of its Ondo Short-Term US Government Treasuries holdings on the XRP Ledger. Ondo processed the redemption, while Mastercard’s Multi-Token Network routed the payment instruction to Kinexys by J.P. Morgan. Kinexys then debited Ondo’s Blockchain Deposit Account and delivered US dollar proceeds to Ripple’s bank account in Singapore through J.P. Morgan’s correspondent banking network.
Ripple, JPMorgan And Mastercard Test XRP LedgerThat structure matters because tokenized real-world assets have often remained dependent on conventional settlement rails at the redemption stage. Onchain tokens may transfer quickly, but the movement back into fiat bank accounts can still involve wire systems, manual workflows and banking-hour constraints. This pilot tested a more integrated model: one leg on a public blockchain, the other on bank infrastructure, with the two coordinated as a single transaction flow.
Ondo described the transaction as a milestone for tokenized finance. “This milestone marks the first time tokenized US Treasuries have settled across borders and banks in near real time and outside traditional banking windows,” the company said in its announcement on X. “For the first time, a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund together in real time. Together, we’re laying the groundwork for 24/7 global markets that never close.”
The involvement of Mastercard and Kinexys by J.P. Morgan is central to the institutional angle. Mastercard’s Multi-Token Network was used to route the settlement instruction, while Kinexys initiated fiat settlement execution on J.P. Morgan’s blockchain infrastructure and supported onward instruction through the bank’s correspondent network. That makes the transaction less about a standalone blockchain transfer and more about interoperability between public-chain asset movement and regulated bank settlement.
Mastercard also positioned the transaction around scale and interoperability. Raj Dhamodharan, the company’s executive vice president for Blockchain and Digital Assets, said institutional demand for tokenized assets is shifting attention toward real-time settlement infrastructure. “As tokenized assets continue to see strong institutional momentum and engagement, the focus is quickly shifting to how tokenized commerce can operate at scale in real time,” he said. “With the Mastercard Multi-Token Network, we’re enabling near real-time, cross-border settlement using existing bank accounts—bringing coordination, trust, and interoperability to institutional on-chain flows.”
Ondo said the framework is designed to support redemptions from any public blockchain where OUSG is issued, including XRPL. OUSG itself remains a restricted product, available only to eligible accredited investors and qualified purchasers, according to the company’s legal disclosures.
At press time, XRP traded at $1.4157.
