Ondo Finance Debuts Tokenized US Treasury Fund on the XRP Ledger: Details

Ondo Finance, a major player in the real-world assets (RWA) ecosystem, has expanded its tokenized U.S. Treasury token into Ripple’s XRP Ledger, a major blockchain network.

The move is set to broaden access to tokenized U.S. Treasuries for institutional investors, according to a recent announcement. The token, Ondo Short-Term U.S. Government Treasuries (OUSG), is backed by BlackRock’s USD institutional Digital Liquidity Fund (BUIDL) and its expansion into the XRP Ledger comes shortly after the launch of Ripple’s own stablecoin, RLUSD.

It also comes after Ripple brought OpenEden’s TBILL into the ledger last year. TBILL is a tokenized U.S. Treasury fund that, just like OUSG, allows investors to gain exposure to tokenized short-term U.S. government debt backed by the U.S. Department of the Treasury.

“This integration is the natural convergence of a compliance-first, yield-bearing product with a network purpose-built for institutional adoption, setting the groundwork for forward-thinking institutions to lead a new era of capital markets onchain,” Katie Wheeler, vice president of partnerships at Ondo Finance, said in the announcement.

Ondo Finance Helps Fuel Treasury Tokenization

Ondo Finance and Ripple’s move to launch OUSG on the XRP Ledger is seemingly part of a broader trend seeing the growth of tokenized treasuries. According RWA.xyz data, there are now around $3.43 billion in tokenized treasuries on various blockchains, offering 12,900 holders a 4.06% yield to maturity.

The largest player in the sector is Hashnote, whose USYC stablecoin is being leveraged by the popular Usual protocol to the point its market capitalization is of $1.2 billion. Next is Securitize with $646 million worth of funds in circulation, being the protocol behind BlackRock’s BUIDL.

Onde falls in third place with $568 million worth of tokenized treasury tokens circulating across various blockchains. OUSG, specifically, currently has $184 million in circulation in the hands of just 52 holders.