Ondo Finance, Kinexys by JP Morgan, Mastercard and Ripple on May 6 completed a pilot transaction connecting the XRP Ledger to traditional interbank settlement rails.
According to Ondo Finance, the operation processed the redemption of OUSG—its tokenized US Treasury bond fund— directly on the public chain of XRP.
According to the sequence described by Ondo Finance, The transaction took place in three steps:
- Ondo processed the OUSG ransom on the XRP Ledger.
- Mastercard’s Multi-Token network routed instructions to Kinexys by JP Morgan
- JP Morgan delivered dollars to Ripple’s bank account in Singapore.
Ondo Finance is a real-world asset (RWA) tokenization protocol that issues instruments such as OUSG, backed by US Treasuries. Your participation in This operation is relevant because it acts as a bridge between the markets of traditional capitals and public blockchain infrastructure.
Kinexys by JP Morgan is the blockchain payments platform of the American bank, formerly known as Onyx. Mastercard, for its part, provided its Multi-Token Network, designed to route transactions between blockchains and traditional payment systems.
The convergence between DeFi and traditional banking
According to Ondo Finance, the relevant fact is not only technical: the firm proposes that tokenized assets “they are no longer separated from the global financial system.” The organization maintains that, for the first time, a public blockchain and global banking infrastructure jointly settled a cross-border transaction of a tokenized fund in real time.
Mastercard, in its statement, points out that the group of participants is “laying the foundation for 24/7 global markets that never close,” in reference to the ability to operate outside the time windows that limit conventional interbank settlement.