Ripple Unlocks Tokenized US Treasuries via RLUSD

Ondo Finance Launches Tokenized U.S. Treasury Product OUSG on XRP Ledger with $30 Million in Locked Value

Ripple’s RLUSD Plays a Key Role as a Settlement Gateway, Bridging Traditional Finance and Blockchain Innovation

June 12, 2025 — New York — Ondo Finance has officially launched its flagship tokenized U.S. Treasury product, Ondo Short-Term U.S. Government Treasuries (OUSG), on the XRP Ledger (XRPL), marking a major milestone in the convergence of blockchain technology and traditional financial markets. The debut comes with an impressive $30 million in total value locked (TVL), highlighting strong institutional interest and the growing maturity of the Real-World Asset (RWA) tokenization space.

The integration of OUSG into XRPL is a strategic move aimed at extending the reach of tokenized financial products to new institutional investors while leveraging Ripple's RLUSD as a core settlement asset. This launch not only enhances capital efficiency but also introduces round-the-clock onchain access to premium U.S. Treasury offerings for global investors.

A Leap Forward in Institutional Blockchain Adoption

According to Ondo Finance, the goal of this move is to provide “institutional-grade assets straight to the institutions,” making it easier for professional investors to manage treasury operations through a flexible and liquid blockchain-based platform.

The XRP Ledger, long recognized for its speed, scalability, and low transaction costs, now positions itself as a growing hub for institutional finance. With features such as a built-in decentralized exchange (DEX), native token support, and compliance capabilities including Decentralized Identifiers (DIDs), the XRPL is equipped to address many of the long-standing inefficiencies in traditional finance — particularly in terms of settlement delays and liquidity access.

By enabling intraday settlement and facilitating instant access to tokenized U.S. Treasury instruments, XRPL is closing the gap between the worlds of decentralized finance (DeFi) and conventional financial systems.

Ripple’s RLUSD as the Infrastructure Backbone

Ripple's RLUSD, a recently introduced U.S. dollar-pegged stablecoin, serves as a key enabler for seamless transactions and settlements involving OUSG. Acting as a financial bridge, RLUSD empowers institutions to gain exposure to traditionally stable, low-risk instruments like U.S. Treasuries — but with the additional benefits of blockchain's transparency and speed.

Source: X

With RLUSD now officially serving as a settlement option for OUSG, Ripple is showcasing its commitment to practical use cases of digital assets, designed specifically with regulatory compliance and institutional adoption in mind. According to Ripple, this initiative is part of a broader vision to “connect traditional finance with DeFi in a way that brings real benefits to professional investors.”

Strong Institutional Backing for OUSG

OUSG’s launch on XRPL is not without precedent. Ondo Finance has already established itself as a leader in the RWA tokenization market, with over $1.3 billion in total value locked across multiple blockchains including Ethereum and Solana. OUSG alone accounts for more than $690 million in TVL, making it one of the most widely adopted tokenized securities in the market today.

The token’s backing includes funds managed by major global financial firms such as Franklin Templeton, FundBridge Capital, BlackRock, and WisdomTree — further cementing OUSG’s credibility and appeal among institutional players.

The expansion to XRPL is a move to not only diversify the token’s ecosystem but also to leverage the ledger’s enterprise-grade architecture for broader market adoption.

Growing Institutional Interest in Tokenized Treasuries

Tokenized U.S. Treasuries are gaining momentum as institutional investors seek more efficient ways to manage capital without sacrificing safety. With the total market value of tokenized U.S. Treasuries surpassing $7 billion in 2025, the space is quickly becoming one of the most active intersections between blockchain and traditional financial products.

This surge reflects a broader trend where real-world assets (RWAs) are finding utility in decentralized finance platforms, allowing asset managers and treasury departments to benefit from faster settlements, enhanced transparency, and lower operational costs.

“The launch of OUSG on the XRP Ledger represents a turning point for institutional finance,” said Ian De Bode, Chief Strategy Officer at Ondo Finance. “It demonstrates that tokenized financial products are not just theoretical — they are here, they are functioning, and they are bringing efficiency to capital markets.”

Enhancing XRPL’s Role in Real-World Asset Tokenization

Ondo Finance’s decision to deploy OUSG on XRPL reflects growing confidence in the ledger’s infrastructure and compliance capabilities. XRPL’s open-source nature and proven history of reliability make it an attractive venue for high-value financial products that require both speed and trust.

Ripple and Ondo Finance are also offering early-stage liquidity support to ensure the product gains traction quickly. By doing so, they aim to create a self-sustaining ecosystem for digital financial instruments, which could pave the way for other tokenized assets to follow.

As more products like OUSG migrate to or launch on XRPL, Ripple’s blockchain is fast emerging as a top choice for institutions seeking real-time digital finance tools. The combination of low latency, integrated compliance features, and ecosystem-wide liquidity makes XRPL an ideal platform for tokenized assets that demand both security and scale.

Market Outlook and Price Sentiment

Despite the technological optimism, market sentiment for both XRP and ONDO tokens has been slightly bearish in the past 24 hours. XRP has seen a marginal decline of 1%, now trading at $2.25, while ONDO has dipped by 2.5%, currently priced at $0.86. Analysts attribute this to short-term market volatility rather than fundamental weakness.

Industry observers suggest that both tokens are well-positioned for growth in the medium to long term, especially given the growing number of real-world use cases. ONDO continues to build legitimacy in the RWA space, while XRP gains recognition as a blockchain of choice for institutions.

With further developments expected around RLUSD and additional institutional products likely to launch on XRPL, investors are keeping a close eye on what’s next for this expanding ecosystem.

A New Era for Blockchain-Based Treasury Products

The introduction of OUSG to the XRPL marks a critical evolution in the blockchain-finance narrative. No longer confined to speculative trading, cryptocurrencies and digital tokens are now becoming tools for real-world financial management.

As global institutions look for innovative ways to optimize capital deployment and improve settlement cycles, the integration of tokenized U.S. Treasuries into efficient ledgers like XRPL may well be the future of institutional finance.

The collaboration between Ondo Finance and Ripple signals a maturing market where decentralized technology meets regulatory compliance and institutional demand. In doing so, they are not only bridging two financial worlds but also shaping the blueprint for what the next generation of finance might look like.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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