Ondo, Ripple, JPMorgan, and Mastercard Complete First 24/7 Tokenized Treasury Settlement - Blockonomi
by Brenda Mary · BlockonomiTLDR:
Table of Contents
- Ondo and Ripple completed a near real-time tokenized Treasury redemption across borders.
- XRP Ledger processed the blockchain asset transfer in under five seconds during pilot.
- Mastercard MTN connected blockchain redemption directly with banking settlement rails.
- The pilot demonstrated 24/7 institutional settlement beyond standard banking hours.
Ondo Finance has completed the first near real-time cross-border redemption of a tokenized U.S. Treasury fund. The transaction was carried out in collaboration with Kinexys by J.P. Morgan, Mastercard, and Ripple.
Together, the four firms settled a cross-border transaction using both a public blockchain and traditional interbank rails.
The process cleared outside standard banking windows, connecting blockchain execution directly to fiat settlement. This marks a practical framework for 24/7 global settlement of tokenized financial assets.
How the Transaction Was Structured
Ripple redeemed a portion of its Ondo OUSG holdings on the XRP Ledger as part of the pilot. Ondo processed the redemption and issued a fiat instruction via the Mastercard Multi-Token Network. The MTN then routed that instruction to Kinexys by J.P. Morgan for settlement execution.
Kinexys debited Ondo’s Blockchain Deposit Account and settled U.S. dollar proceeds to Ripple’s Singapore bank account.
The transfer moved through J.P. Morgan’s correspondent banking network, completing a full cross-border, cross-bank flow. No separate manual instructions were needed at any point in the process.
The XRP Ledger processed the asset leg in under five seconds. Markus Infanger of RippleX stated that this pilot showed institutions can execute cross-border transactions as a single integrated flow.
That speed enabled settlement well outside traditional banking cut-off windows. That distinction gave the pilot a clear operational advantage over conventional settlement systems.
One leg cleared on a public blockchain while the other settled on banking infrastructure. The two systems coordinated directly rather than requiring parallel, independent instructions. Ian De Bode of Ondo Finance said this lays the groundwork for 24/7 global markets that never close.
What This Means for Tokenized Asset Infrastructure
Tokenized real-world assets have grown across the financial sector, but redemption infrastructure has lagged behind.
Traditional wire systems, manual processes, and limited operating hours have restricted how institutions redeem and settle these assets.
Together, these constraints have limited the scalability of tokenized asset redemption for institutional players. This pilot connects blockchain-based redemption to automated fiat settlement, removing those long-standing barriers.
The Mastercard MTN served as the interoperability layer between the blockchain and banking environments. Raj Dhamodharan of Mastercard said the MTN makes near real-time, cross-border settlement available through existing bank accounts. That connectivity allows institutions to access tokenized assets without replacing existing banking infrastructure.
Zack Chestnut of Kinexys by J.P. Morgan said broad adoption requires collaboration across geographies, banking systems, and public blockchains.
This pilot proves that multi-party coordination at that level is achievable today. The transaction was not theoretical — it was executed between real global financial institutions.
The framework supports redemptions from any public blockchain where OUSG is issued, starting with XRPL. Ondo Finance has positioned this as a scalable model for continuous, round-the-clock tokenized asset markets.
The completed pilot shows that 24/7 cross-border settlement across global banks is now operationally within reach.