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A group of financial and crypto firms have completed what they describe as the first near real-time cross-border, cross-bank redemption of a tokenized U.S. Treasury fund.
Ondo Finance said the pilot was conducted with Kinexys by JPMorgan, Mastercard, and Ripple — marking a step toward continuous, global settlement of tokenized assets. The transaction combined public blockchain infrastructure with traditional banking rails, allowing both asset redemption and fiat settlement to occur in near real time.
Until now, redemptions of tokenized assets have relied on wire transfers, manual processes, and fixed banking hours. This pilot replaced all of that with a single integrated flow — blockchain execution triggering interbank settlement directly, without siloed instructions across separate systems.
How the transaction worked
The pilot involved redeeming tokenized U.S. Treasury assets issued on the $XRP Ledger.
Ripple redeemed a portion of its Ondo Short-Term U.S. Government Treasuries (OUSG) holdings on XRPL. Ondo processed the redemption and triggered a fiat payout instruction through Mastercard's Multi-Token Network.
That instruction was routed to Kinexys by J.P. Morgan, which debited Ondo's Blockchain Deposit Account and completed settlement in U.S. dollars to Ripple's bank account in Singapore through its correspondent banking network.
The blockchain leg of the transaction was processed in under five seconds.
Tokenized Treasuries are now a $12 billion market
Tokenized U.S. Treasuries have exploded over the past year, crossing the $10 billion milestone on February 11, 2026, for the first time. As of early April, the market stood at approximately $12.88 billion — up 225% over 15 months.
The broader tokenized real-world asset (RWA) market has grown even faster, surging 256.7% from $5.42 billion at the start of 2025 to $19.3 billion by the end of Q1 2026. Some estimates put the April figure closer to $27.6 billion.
But while issuance has scaled rapidly, redemption infrastructure has lagged behind — still dependent on traditional wire systems and limited banking hours. That gap is what this pilot was designed to close.
Ondo itself has emerged as a major player in this space. The protocol's total value locked crossed $3 billion in April 2026, with OUSG — the fund used in this pilot — holding approximately $770 million in TVL across Ethereum, Solana, XRPL, and Polygon.
The transaction highlights how tokenized assets can connect public blockchain networks with global banking infrastructure in a single workflow.
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What the executives said
“By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close,” said Ian De Bode, President of Ondo Finance.
"The $XRP Ledger enables real-time asset movement, and when paired with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions as a single, integrated flow," said Markus Infanger, SVP of RippleX.
Zack Chestnut, Global Head of Commercialization at Kinexys by JPMorgan, added, "To see widespread adoption of tokenized financial products, we need wholesale cross-industry collaboration across geographies, global banking infrastructure and public blockchains. We're excited to continue working with Ondo, Ripple and Mastercard to bring this to life."
Raj Dhamodharan, executive vice president of Blockchain and Digital Assets at Mastercard, said the focus is now shifting toward scale. "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.
Toward always-on global markets
The pilot outlines a potential framework for how tokenized financial products could operate continuously across multiple banks and regions.
The system is designed to support redemptions from any public blockchain where Ondo's OUSG is issued, including XRPL.
It is worth noting that this is not JPMorgan's first foray into public blockchain settlement.
In May 2025, Kinexys connected with Chainlink and Ondo to execute a delivery-versus-payment transaction on the Ondo Chain testnet — the first time JPMorgan's payment infrastructure had directly interacted with a public blockchain. This latest pilot goes further by adding cross-border fiat settlement through a correspondent banking network.
By combining public blockchain execution with interbank settlement systems, the model points toward a financial infrastructure that can run 24/7, with near real-time settlement across borders — something traditional markets have never been able to do.