JPMorgan, Mastercard and Ripple complete cross-border XRP tokenized Treasury settlement

Ondo Finance said Ripple has redeemed OUSG on XRP Ledger and received a USD payout in Singapore through Mastercard and Kinexys by J.P. Morgan. The May 6 pilot tested whether a tokenized fund redemption on a public blockchain could trigger a bank-account payout across borders and banks, using a transaction path that Ondo said operated outside traditional banking windows. Ondo said the XRP Ledger leg processed in under five seconds. The cash leg stayed inside bank infrastructure, moving through Mastercard's Multi-Token Network, Kinexys by J.P. Morgan, and J.P. Morgan's correspondent banking network. That split is the core of the development. The pilot links public-chain settlement speed to bank-account completion while keeping the USD payout on bank infrastructure. The available record separates XRP Ledger's asset role from the USD payout, which was initiated on Kinexys and delivered to Ripple's Singapore bank account through J.P. Morgan's rails. How the settlement chain was divided Ondo described the transaction as the first near-real-time, cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. Ripple redeemed part of its Ondo Short-Term U.S. Government Treasuries holdings on XRP Ledger. The redemption then moved into a payout path. Ondo processed the request, Mastercard's Multi-Token Network routed the instruction, Kinexys debited Ondo's Blockchain Deposit Account, and J.P. Morgan's correspondent banking network delivered the USD proceeds to Ripple's Singapore bank account. Leg Actor or rail What it did Practical effect Asset leg XRP Ledger Recorded the OUSG redemption Ondo said this leg processed in under five seconds Instruction leg Mastercard Multi-Token Network Routed the fiat payout instruction Connected the onchain redemption to bank settlement infrastructure Cash leg Kinexys by J.P. Morgan and J.P. Morgan correspondent banking Moved USD proceeds to Ripple's Singapore bank account Kept fiat completion inside regulated bank rails The structure shows how the asset record, instruction layer, and fiat payout can be coordinated so an institution can avoid a separate manual process after a tokenized fund redemption. XRP Ledger documentation says new ledger versions usually close about every three to five seconds, which supports the plausibility of a fast asset leg. The pilot-specific processing time and first-of-its-kind framing remain attributed to Ondo. Ondo's June 2025 launch brought the tokenized Treasury product to XRPL with minting and redemption support tied to Ripple's RLUSD stablecoin, and CryptoSlate covered that launch at the time. Related Reading Ripple brings Ondo Finance's tokenized US Treasuries to XRP Ledger in push for RWA expansion Ripple targets the burgeoning $19 trillion tokenized asset market through innovative XRPL initiatives and strategic alliances. Jun 11, 2025 · Oluwapelumi Adejumo The fresh peg is the redemption-to-bank-account path. Ripple's OUSG redemption was tied to a cross-border payout route involving Mastercard and J.P. Morgan infrastructure, building on the tokenized fund's existing XRPL deployment. Kinexys also entered the pilot with prior tokenized-settlement work behind it. J.P. Morgan's blockchain unit had already completed a tokenized Treasury settlement test with Ondo and Chainlink in 2025, using a delivery-versus-payment structure that connected Kinexys Digital Payments to Ondo Chain testnet activity. CryptoSlate covered that Kinexys-Ondo test as an earlier bridge between bank payment rails and tokenized asset markets. The May 2026 pilot extends that baseline into a different pattern: OUSG redemption on the XRP Ledger, a payout instruction via Mastercard, and a USD payment to a Singapore bank account. Related Reading JPMorgan bridges blockchain and traditional finance in landmark pilot transaction This test marks the first connection between JPMorgan's private blockchain and a public Layer-1 chain. May 14, 2025 · Oluwapelumi Adejumo Mastercard's role also fits a prior setup. The company announced Ondo in 2025 as the first tokenized real-world asset provider on its Multi-Token Network, describing MTN as a way to link commercial banks with digital assets that can move around the clock. In this pilot, MTN served as the routing layer between on-chain redemption and Kinexys settlement, with the issuer and dollar-settlement roles handled elsewhere. Scale gives the pilot useful context OUSG is a qualified-access product. Ondo's documentation describes it as tokenized exposure primarily to short-term U.S. Treasuries and government-sponsored enterprise securities, with access limited to eligible investors who complete onboarding for Ondo's qualified-access products. That restriction changes the likely near-term audience. The first users of this type of settlement design are more likely to be funds, payment firms, market makers, treasury teams, or financial institutions managing tokenized collateral and cash positions across time zones. The setup points first