Altcoins News

Story: JPMorgan and Mastercard Move US Treasuries Cross-Border on XRP Ledger in Banking First

By Evie Vavasseur

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Why XRP Ledger Matters Here. The XRP Ledger isn't some private chain that banks control top to bottom.

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What Tokenized Treasuries Actually Mean. Tokenizing a US Treasury means taking a real bond or bill and representing it as a digital token…

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Regulatory Hurdles and Industry Pushback. Getting regulators comfortable with tokenized Treasuries on public blockchains won't be easy.

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JPMorgan Chase just did something big. The bank moved a tokenized US Treasury asset across borders using the XRP Ledger, working alongside Mastercard.

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The transfer used a tokenized version of a real US Treasury instrument, not some made-up test asset.

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The XRP Ledger isn't some private chain that banks control top to bottom. It's decentralized, which means no single entity runs the show.

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Cross-border payments have always been slow. Money moves through multiple intermediaries, each taking a cut and adding delays.

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But here's the thing: this was still a pilot. One transaction. It worked, which is great, but it doesn't mean JPMorgan's about to tokenize its entire Treasury portfolio tomorrow.

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JPMorgan's been working on tokenization for a while now. The bank has its own blockchain platform, Onyx, which it uses for repo transactions and other wholesale banking activities.

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Read also: XRP ETFs Pull $1.3B as Ripple Joins Cyber Defense Network

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The earlier pilot that JPMorgan ran involved moving funds between a public blockchain and a permissioned one. That test proved interoperability works, at least in theory.

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Banks have been talking about blockchain for almost a decade now. Lots of pilots, lots of whitepapers, not a ton of actual production systems handling real money at scale.

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Industry-wide collaboration's another hurdle. Banks compete with each other, and getting them all to agree on a single blockchain standard is like herding cats.

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Cost savings from blockchain are real, but they're hard to quantify until you're running these systems at scale.

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The successful transfer does show that the technology works for complex financial instruments. US Treasuries aren't simple assets.

The Currency Analytics

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