A key piece of financial infrastructure that combines tokenized assets with traditional banking was put to a true cross-border test this week.
Ondo Finance said on Wednesday it had completed the first near-real-time cross-border redemption of a U.S. Treasury tokenized fund alongside JPMorgan Chase’s blockchain platform Kinexys, payments giant Mastercard and Ripple.
The transaction, which completed in less than five seconds on the XRP Ledger, involved OUSG, Ondo’s tokenized U.S. Treasury bond fund for accredited investors and qualified purchasers.
The pipeline begins with Ondo processing redemptions on XRP Ledger, before Mastercard’s multi-token network sends instructions to Kinexys and JPMorgan transfers the dollars to Ripple’s Singapore bank account.
The entire process occurs outside traditional banking windows, and this cross-border settlement typically takes one to three business days via correspondent banking.
“By connecting public blockchain infrastructure with interbank settlement rails, Ondo, JPMorgan’s Kinexys, Mastercard and Ripple are laying the foundation for a 24/7 global market that never shuts down,” Ondo President Ian De Bode said in a statement.
Markus Infanger, senior vice president of RippleX, said the transaction demonstrates that institutions can run cross-border tokenized asset transfers as a single integrated process, rather than stitching them together through legacy systems.
The Depository Trust & Clearing Corporation (DTCC) said earlier this week that the pilot project will launch its own tokenization service later this year. JPMorgan Chase’s Kinexys platform has now processed more than $3 trillion in cumulative transactions, and last year the volume of tokenized deposits from major banks reached billions of dollars.
XRP and ONDO have fallen 2% in the past 24 hours, while a broader pullback has also occurred across the cryptocurrency market.
