Ripple Labs and Ondo Finance have revealed their collaboration to introduce tokenized U.S. Treasury securities onto the XRP Ledger (XRPL). As part of this partnership, Ondo Finance’s $185 million US Treasury token, known as OUSG, is set to be incorporated into the business-oriented blockchain platform over the coming six months.
Ripple Labs announced in a press release on January 28 that they are partnering with a company that tokenizes real world assets. The partnership involves backing Ondo Short-Term U.S. Government Treasuries (OUSG) with the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
The OUSG token provides institutional investors with a gateway to invest in short-term US government treasury securities directly on the XRP Ledger platform.
XRPL stands out as being in a special position to help institutions incorporate traditional financial assets into blockchain technology, providing increased security, provable trustworthiness, and potential for generating additional revenue, as indicated in the announcement.
After the recent updates, the value of Ondo Finance’s token (ONDO) has increased by 5% compared to its price from the previous day and is currently being traded at $1.39 according to the latest information from Coingecko. Moreover, its market capitalization has risen by 4.2%, surpassing the $4.3 billion threshold.
Ripple introduces a new application for its stablecoin RLUSD.
According to a recent press conference, Ripple Labs announced that its stablecoin, Ripple USD (RLUSD), launched in and exchange OUSG tokens 24/7, without any restrictions on timing or day of the week.
Markus Infanger, Senior Vice President of RippleX, the division responsible for developing the XRPL, emphasized the significance of tokenized real-world assets, highlighting their ability to promote broader access to financial services and bring stability to the often-volatile digital currency markets.
“The introduction of around-the-clock, real-time settlement capabilities through the use of tokenized assets such as OUSG represents a groundbreaking change in the way capital is managed, liberating it from the constraints of conventional market hours and lengthy settlement periods.”
Certain sources of information have indicated that Ripple and Ondo Finance have made initial seed investments to support liquidity for OUSG on the XRP Ledger. Nevertheless, the exact amount of these investments was not made public.
Katie Wheeler, the Vice President of Partnerships at Ondo Finance, highlighted that the merging of top-tier financial products with blockchain technology is a crucial advancement. The RWA tokenization platform has achieved the milestone of being the first in the US Treasuries sector to exceed $600 million in total value locked (TVL).
Wheeler expressed that this collaboration combines a product focused on compliance and generating yield with a network designed for institutional use. He believes that this partnership paves the way for visionary institutions to take the lead in a new phase of capital markets using blockchain technology.
XRPL is expanding the trend of tokenizing real-world assets (RWA).
Ondo Finance is set to become the second organization to introduce its tokenized US treasury assets onto the XRP blockchain network. Previously, in August 2024, OpenEden launched tokenized US Treasury bills (T-bills) on the XRPL, which represent short-term U.S. government debt obligations.
“Organizations are actively exploring options for tokenizing their tangible assets, and the introduction of T-bills on the XRPL, facilitated by OpenEden, further solidifies the decentralized Layer 1 blockchain as a top choice for tokenizing real-world assets,” stated RippleX Senior VP Infanger.
Ripple has highlighted the promising prospects of the R forecast by the Boston Consulting Group that anticipates the market reaching a staggering $16 trillion by 2030.
In 2024, there was remarkable growth in these assets, as the total locked value exceeded $176 billion, as indicated by research conducted by the Tokenized Asset Coalition (TAC).
