Ondo Finance, a tokenized real-world asset platform, is bringing its $185 million U.S. Treasury token to the enterprise-focused XRP Ledger network to expand the offering for institutions, the companies said Tuesday. The Ondo Short-Term US Government Treasuries (OUSG) token is backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and allows qualified investors to mint and redeem tokens around the clock near instantaneously using the Ripple’s RLUSD stablecoin.
The deployment is set to go live within the next six months, Ondo Finance said in a blog post. Both Ripple, the development firm closely related to the XRP Ledger, and Ondo Finance committed seed investments in the token on the XRP Ledger for initial liquidity. They did not reveal the size of the allocations. ONDO, the governance token of Ondo Finance, advanced 4% on the news.
Tokenization of real-world assets (RWA) is a rapidly growing industry that involves representing traditional finance assets such as bonds, credit and funds on a blockchain. Participants do so in pursuit of faster settlements and increased efficiency compared with traditional banking plumbing. Tokenized versions of U.S. Treasury notes spearheaded the trend, and have more than quadrupled over the past year to become a $3.5 billion asset class, rwa.xyz data shows.
“The 24/7 intraday settlement enabled by tokenized assets like OUSG marks a transformative shift in capital flow management, breaking free from traditional trading hours and slow settlements,” Markus Infanger, a senior vice president of RippleX, an XRP Ledger development firm, said in a statement.
“These low-risk, high-quality liquidity options not only provide better accessibility for investors but also introduce greater stability to blockchain-based markets. OUSG follows OpenEden’s TBILL as the second tokenized treasury product available on XRP Ledger. OUSG previously was available on Ethereum, Polygon and Solana.
Elon Musk's artificial intelligence company xAI has filed a federal lawsuit challenging Minnesota's landmark law banning AI-powered "nudification" technology, arguing…
Bitcoin climbed toward $65,000 as an unusual shift in traditional financial markets created one of the rarest conditions…
Hyperscale Data has sold 100 Bitcoin to accelerate development of its planned artificial intelligence campus in Michigan, sending shares…
A newly launched memecoin called PIPEDOG ($PIPEDOG) became the latest breakout token on Robinhood Chain, surging more than 140x within…
BNY, the world's largest custodian bank, is bringing one of its core financial businesses onto…
A bipartisan group of U.S. senators has reportedly reached a new compromise on the ethics provisions of…