Ondo Finance Launches Tokenized Treasury Fund on XRP Ledger, Targets Institutional Investors

• Ondo Finance will launch its OUSG fund on XRP Ledger, partnering with Ripple to offer tokenized Treasuries to institutional investors.
• Ripple added OpenEden’s TBILL to XRPL in 2024; the tokenized Treasury market now exceeds $3.5 billion.

Ondo Finance will integrate its U.S. Treasury-backed token, OUSG, into Ripple’s XRP Ledger (XRPL) to expand institutional access to tokenized government debt.

The collaboration, announced January 28, follows Ripple’s August 2024 addition of OpenEden’s TBILL, another tokenized Treasury product, to the same network. Ondo’s OUSG fund, supported by BlackRock’s BUIDL platform, enables round-the-clock minting and redemption using Ripple’s stablecoin, RLUSD.

Ripple designed XRPL to prioritize compliance and scalability for enterprise use. Ondo’s move aligns with this framework, aiming to attract financial institutions seeking regulated, yield-generating assets.

Katie Wheeler, Ondo’s vice president of partnerships, described the integration as a “convergence” of compliance-focused products and institutional-grade infrastructure.

Ripple and @OndoFinance are bringing OUSG, tokenized U.S. Treasuries to the XRP Ledger.

With 24/7 minting & redemption using RLUSD, unmatched liquidity, and institutional-grade security, learn how this partnership marks a major step forward for onchain RWAs.… pic.twitter.com/0T3mXGSxbW

— RippleX (@RippleXDev) January 28, 2025

The tokenized U.S. Treasuries market now totals $3.5 billion, driven by demand for blockchain-based exposure to low-risk government bonds. Ondo’s OUSG holds a market value of $185 million, while its Dollar Yield product manages $384 million in deposits. BlackRock’s BUIDL and Franklin Templeton’s FOBXX dominate the sector, with $600 million and $509 million in assets, respectively. OpenEden’s TBILL, also on XRPL, trails at $82 million.

We are bringing OUSG to the XRP Ledger with @Ripple .

OUSG, an institutional-grade product backed by tokenized US Treasuries and BlackRock’s BUIDL fund, represents a natural fit for a blockchain purpose-built for institutional adoption.

See how Ondo and Ripple are powering… pic.twitter.com/pLjZnvbmgc

— Ondo Finance (@OndoFinance) January 28, 2025

Ripple’s partnership with Ondo underscores its strategy to position XRPL as a hub for real-world asset (RWA) tokenization . Unlike decentralized networks, XRPL emphasizes regulatory compatibility, a feature critical for institutional adoption. The ledger’s integration with RLUSD allows investors to trade tokenized Treasuries without traditional banking delays.

Tokenized US Treasuries are becoming the new foundational money layer onchain.

By combining ease of payments with the built-in savings functionality of US Treasuries, tokenized US Treasuries offer the best features of stablecoins with the steady, attractive yield of US…

— Ondo Finance (@OndoFinance) January 27, 2025

Tokenized RWAs have grown rapidly since 2023, with U.S. Treasuries leading the trend. Analysts attribute this to rising interest rates and institutional demand for blockchain efficiency. However, adoption remains concentrated among asset managers and crypto-native firms. Ondo’s expansion onto XRPL could widen participation by leveraging Ripple’s existing partnerships with banks and payment providers.