In a significant move blending traditional finance with blockchain innovation, Ondo Finance has made its tokenized US Treasury product, OUSG, available on the XRP Ledger. This development gives institutions a more efficient way to manage US Treasuries using Ripple’s RLUSD as the settlement currency, potentially opening the door to faster transactions, improved liquidity, and broader adoption of tokenized real-world assets.

The development highlights a shift in how financial institutions are looking at blockchain. It’s not just about speculative assets anymore—real financial products like US Treasuries are being managed on-chain, and the XRP Ledger is now a key part of this evolution.

OUSG Arrives on the XRP Ledger

OUSG, short for Ondo Short-Term US Government Treasuries, is a digital representation of US Treasury bonds. By tokenizing these assets, Ondo Finance offers a more flexible and accessible way for institutions to manage their treasury holdings.

Until now, OUSG had been operating on Ethereum and Solana blockchains. By expanding to the XRP Ledger, Ondo adds another major blockchain network to its ecosystem, bringing with it some advantages unique to XRPL—namely, fast settlements and low transaction fees. At the time of writing, over $30 million in value is held in OUSG tokens on XRPL.

The XRP Ledger’s integration of OUSG comes at a time when the demand for tokenized financial assets is growing. According to Ondo, this move is not just about adding another blockchain; it’s about tapping into XRP Ledger’s capabilities for real-time settlement and easier access to liquidity—important features that traditional finance has long struggled with.

A New Role for Ripple’s RLUSD

What makes this integration more powerful is the use of Ripple’s RLUSD as a settlement currency. RLUSD is Ripple’s new stablecoin pegged to the US dollar, specifically designed for fast and secure transactions within institutional environments. Using RLUSD, institutions can now settle their treasury investments on-chain without the delays and frictions commonly seen in traditional wire systems.

Ian De Bode, Chief Strategy Officer at Ondo Finance, said this partnership reflects their intent to bring reliable financial infrastructure to institutions using blockchain. “Accessing high-quality financial products like Treasuries on-chain gives institutions better control and faster tools for treasury management,” he noted.

Ondo’s Expanding Influence in Tokenized Finance

Ondo Finance is one of the leading names in the real-world asset (RWA) tokenization space. The company has already built a strong reputation, with over $1.3 billion in total value locked across its offerings. OUSG alone manages over $690 million in assets.

One of the major strengths of OUSG is its backing by well-known traditional asset managers, including BlackRock, Franklin Templeton, and WisdomTree. These firms are responsible for managing the actual Treasury bonds that OUSG tokens represent.

The fact that such high-profile managers are involved adds a layer of trust to the entire system. For institutions, this means that the tokenized version of the Treasury bonds they’re investing in has a direct line to the traditional market.

What Makes XRPL Integration Different from Ethereum

While OUSG has existed on Ethereum for some time, the XRP Ledger offers some clear advantages. Ethereum’s network, although widely used, often suffers from congestion and high fees. In contrast, XRPL is built for speed and scalability. Transactions on XRPL are processed in seconds with minimal fees—ideal for institutions that need to move large sums of money quickly and efficiently.

Another benefit is XRPL’s built-in decentralized exchange (DEX), which allows users to easily swap between different tokens. This feature is expected to enhance liquidity for OUSG and make it easier for institutions to access or exit positions as needed.

Additionally, XRP Ledger’s native functionality simplifies how tokenized assets are issued and managed, reducing technical barriers and compliance risks for financial entities.

Market Reaction: XRP and ONDO Dip Slightly

Despite the significance of this integration, the broader crypto market has remained cautious. Over the last 24 hours, XRP has dropped around 1% to trade at $2.25, while ONDO, the native token of Ondo Finance, fell by 2.5% to $0.86.

These small declines appear to reflect overall market volatility rather than any specific negative reaction to the XRPL development. Analysts suggest that as institutional adoption picks up, sentiment around these tokens could shift over the coming weeks.

The Bigger Picture: Real-World Assets on Blockchain

This development comes amid growing interest in real-world asset tokenization. More asset managers, banks, and fintech platforms are exploring ways to put traditional financial products—like Treasury bonds, real estate, and even commodities—on blockchain networks.

The potential benefits are significant: increased accessibility, improved efficiency, and better risk management. For investors, it means being able to hold real financial instruments in a digital wallet, and for issuers, it reduces paperwork and accelerates settlement.

With Ripple’s RLUSD now supporting access to tokenized Treasuries, and OUSG expanding across multiple chains, it’s clear that traditional and decentralized finance are moving closer together. Whether other major asset providers follow Ondo’s example and explore the XRP Ledger remains to be seen, but the foundation has been laid.

Conclusion

Ondo Finance’s move to bring OUSG to XRP Ledger with RLUSD as the settlement currency is a milestone in the ongoing shift from traditional finance to digital asset infrastructure. With faster settlements, strong institutional backing, and simplified access to Treasuries, this could be a model for how other tokenized financial products evolve in the coming years.

As financial institutions look for smarter, faster, and more transparent ways to manage assets, integrations like these may become the standard—bringing Wall Street onto the blockchain one bond at a time.