Ondo Finance, Kinexys by J.P. Morgan, Mastercard, and Ripple have completed the first near real-time cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. The pilot, announced today, demonstrates a framework for 24/7 settlement that bridges public blockchain infrastructure with traditional interbank rails.
What happened
Ripple redeemed a portion of its Ondo Short-Term U.S. Government Treasuries (OUSG) holdings on the XRP Ledger (XRPL), a public blockchain. Ondo processed the redemption and initiated a fiat payout instruction via the Mastercard Multi-Token Network (MTN), which routed the instruction to Kinexys by J.P. Morgan. Kinexys then debited Ondo's Blockchain Deposit Account and settled U.S. dollar proceeds to Ripple's bank account in Singapore through J.P. Morgan's correspondent banking network.
The XRP Ledger processed the asset leg of the transaction in under five seconds. The entire flow — redemption, fiat instruction, cross-border settlement — occurred outside traditional cut-off windows, in near real time.
Why it matters
Tokenized real-world assets have grown significantly, but redemption infrastructure has largely remained dependent on traditional wire systems, manual processes, and limited operating hours. This pilot shows an integrated model where blockchain-based asset redemption can trigger settlement without requiring separate, siloed instructions. One leg of the transaction occurred on a public blockchain, while the other settled on bank infrastructure — the first transaction of its kind between global financial institutions.
The architecture
The pilot connected three distinct layers:
- Public blockchain (XRPL): processed the asset redemption leg in under five seconds.
- Mastercard Multi-Token Network: provided interoperability between onchain assets and traditional fiat money, routing the payout instruction.
- Kinexys by J.P. Morgan: executed fiat settlement via its blockchain infrastructure and initiated onward instruction through J.P. Morgan's correspondent banking network for cross-border delivery of funds.
The architecture is designed to support redemptions from any public blockchain on which OUSG is issued, including XRPL.
What the participants say
Ian De Bode, President of Ondo Finance, called the milestone "the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows." Markus Infanger, SVP of RippleX, said the pilot shows "how institutions can execute cross-border transactions as a single, integrated flow." Zack Chestnut, Global Head of Commercialization at Kinexys by J.P. Morgan, described it as "an important step towards establishing a framework for institutional-scale tokenized asset markets." Raj Dhamodharan, executive vice president of Blockchain and Digital Assets at Mastercard, noted that the focus is "quickly shifting to how tokenized commerce can operate at scale in real time."
Bottom line
This pilot establishes a practical framework for continuous, real-time coordination between public blockchains and global banking infrastructure. For tokenized financial products to operate at institutional scale, settlement infrastructure must function across banks and geographies outside traditional operating windows — this transaction demonstrates one way to achieve that.