ONDO, Ripple, J.P. Morgan, and Mastercard Complete First Cross-Border Tokenized Asset Redemption
Ondo Finance, Ripple, J.P. Morgan‘s Kinexys blockchain unit, and Mastercard completed the first cross-border, cross-bank redemption of a tokenized U.S.
Treasury product on May 6. The transaction moved tokenized fund units across two separate banking institutions in different jurisdictions, settling on-chain without a traditional correspondent banking intermediary.
The announcement marks the first live execution of its kind in the real-world asset space.
How the Transaction Worked
PR Newswire published the full release on May 6. The pilot used Ondo’s tokenized U.S.
Treasury product, which represents ownership of short-duration U.S. government securities held in a regulated fund structure. Kinexys, J.P.
Morgan’s institutional blockchain network, handled the interbank settlement layer. Mastercard provided the cross-border payment infrastructure. XRP (XRP) and Ondo (ONDO) tokens both saw price increases in the hours following the announcement, with ONDO rising approximately 6.7% in the 24-hour period ending May 8.
A tokenized fund, as used here, is a blockchain-based digital representation of ownership in a traditional investment vehicle.
It allows institutions to transfer fund shares on-chain and settle instantly rather than through the T+2 cycle of conventional fund redemptions.
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Background
Ondo Finance launched its flagship OUSG product, a tokenized short-term U.S. Treasury fund, in early 2023.
The protocol has grown to rank 46th by market capitalization among all cryptocurrency assets, with total value in tokenized products exceeding $500 million. Ripple has pursued institutional blockchain settlement since 2012 and has operated its On-Demand Liquidity product using XRP as a bridge asset across dozens of corridors.
J.P. Morgan’s Kinexys, previously called Onyx, has processed more than $1.5 trillion in cumulative transactions since its launch.
The May 6 pilot is the first time all four networks collaborated on a single live transaction.
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What Comes Next
The pilot’s completion opens a path toward productizing cross-border institutional fund redemptions on public or permissioned blockchains at scale. Ondo’s team said in the release that subsequent phases would test higher transaction volumes and additional asset classes.
Regulatory recognition of tokenized fund redemptions as legally equivalent to traditional transfers remains the primary barrier to broad adoption. The U.S.
SEC has not issued formal guidance on tokenized fund settlement as of May 8.
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