In partnership with Ripple, Ondo Finance has announced plans to bring its tokenized U.S. Treasury Fund labelled Ondo Short-Term US Government Treasuries (OUSG), to the XRP Ledger (XRPL). The deployment, scheduled to go live between February and June 2025, would introduce institutional investors to a compliant, yield-bearing asset backed by high-quality U.S. Treasuries.
Beyond bridging decentralized finance (DeFi) and traditional finance, this move holds significant implications for XRP, the native token of the XRPL. Moreover, the development enhances the XRPL’s utility and strengthens its appeal to financial institutions, marking a critical step forward for institutional DeFi adoption and XRP’s role within the ecosystem.
XRP Ledger welcomes Tokenized Treasury
Announced on 28 January 2025, the upcoming deployment of OUSG on the XRPL introduces a new level of accessibility for institutional investors. As a tokenized U.S. Treasury fund, OUSG is backed by high-quality U.S. Treasuries and adheres to strict compliance standards, including Know Your Customer (KYC) and Anti-Money Laundering (AML) measures.
Notably, OUSG is also backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This move will provide XRPL’s broad institutional user base with a secure and regulated asset, offering a unique blend of security, compliance, and yield. Ripple and Ondo Finance have also secured liquidity commitments for OUSG at launch, ensuring a robust trading environment and encouraging further adoption of tokenized real-world assets (RWAs) on the XRPL. Additionally, OUSG will seamlessly integrate with Ripple’s RLUSD stablecoin, enabling users to mint and redeem tokens 24/7. This feature ensures constant liquidity and flexibility, enhancing financial operations for institutional users.
Reacting to the development, Ondo Finance CEO Nathan Allman wrote: “Excited to partner with [Brad Garlinghouse] and the Ripple team to bring OUSG to the XRP Ledger. Together, we’re advancing American leadership in tokenization, with a shared focus on compliance, liquidity, and institutional-grade innovation.”
Read also: XRPL validators approve automated market maker pools for RLUSD stablecoin.
Advantages of OUSG on XRPL
Deploying OUSG on the XRPL brings numerous benefits as stated in the report, making it an ideal platform for institutional DeFi and treasury management.
First, OUSG is backed by the BlackRock USD Institutional Digital Liquidity Fund and short-term US Treasuries, providing a secure investment option. The XRPL’s advanced compliance tools, such as Decentralized Identifiers (DIDs) and onchain credential management, enhance regulatory adherence, aligning with the needs of institutional clients.
Second, through its integration with RLUSD, OUSG offers high-quality liquidity with intraday settlement capabilities. This eliminates the constraints of traditional trading hours, allowing institutions to efficiently manage portfolios and access tokenized treasury-backed assets anytime.
Third, XRPL’s robust infrastructure, characterized by high throughput, low fees, and reliability, makes it an ideal platform for hosting tokenized RWAs. Upcoming innovations, including Multi-Purpose Tokens (MPTs) and Permissioned Domains, further solidify XRPL’s position as a leader in institutional DeFi.
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Rising XRPL adoption
The XRPL has long been a pioneer in bridging traditional finance with digital asset ecosystems. With over a decade of experience in cross-border payments, stablecoin issuance, and asset custody, the XRPL offers an unparalleled foundation for institutional-grade solutions. The introduction of OUSG to XRPL extends the ledger’s capabilities, enabling institutions to manage cash reserves, optimize portfolios, and access high-quality yield products entirely onchain. The combination of XRPL’s advanced features and OUSG’s compliant framework sets a new standard for institutional DeFi, fostering greater adoption of tokenized assets.
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Potential impact on XRP
The deployment of OUSG on the XRPL could have a profound impact on XRP. Notably, the introduction of a compliant, institutional-grade tokenized asset like OUSG, strengthens the XRPL’s position as a go-to platform for financial institutions.
In turn, this positive development enhances the ledger’s utility and could attract increased institutional activity, potentially driving demand for XRP as a bridge asset in transactions.
Also, the integration of OUSG with Ripple’s RLUSD stablecoin creates additional use cases for XRP within the ecosystem, potentially boosting liquidity and fostering greater adoption.
Read also: XRP rises to 7-year high.
Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been studying the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.
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