- Ondo Finance is bringing its US Treasury Fund OUSG to the XRP Ledger as it seeks to leverage the high throughput and the massive institutional user base of the latter.
- The strategic deployment would directly provide institutional-grade assets to institutions while providing broad on-chain accessibility.
Ondo Finance (ONDO) has announced a strategic decision to move its tokenized US Treasury Fund – Ondo Short-Term US Government Treasuries (OUSG) to the XRP Ledger (XRPL). According to the press release, this migration would be fully completed in six months.
Delving into this, we found that the decision was inspired by the massive institutional user base of the XRPL, which provides a perfect avenue to bridge Decentralized Finance (DeFi) and Traditional Finance (TradFi), as mentioned in our previous news brief.
More About the Collaboration
Highlighting some of the key factors of this collaboration, ONDO finance disclosed that its deployment would give institutional investors on XRPL the first access to OUSG. Fascinatingly, this tokenized fund combines security, compliance, and yield, creating regulatory certainty around its usage. Additionally, both parties have agreed to seed OUSG liquidity after the first deployment. On the positive side, this would significantly improve tokenized Real World Assets (RWA) adoption on the XRPL.
In addition to the access to round-the-clock mint and redemption features, there would be smooth interoperability with Ripple’s RLUSD. This implies that an instant minting and redemption of the OUSG would be done through the RLUSD to encourage financial flexibility. Ondo Finance emphasizes that integrating OUSG would transform institutions’ engagement with tokenized assets on the platform.
By bringing OUSG to the XRPL, Ondo Finance is bringing institutional-grade assets directly to the institutions, providing broad on-chain accessibility, and changing how institutions interact with tokenized assets as flexible treasury management tools. By enabling institutions to manage cash, optimize portfolios, and access high-quality yield products entirely on-chain, the intersection of DeFi and traditional finance, and the broad adoption of tokenized assets lives on the XRPL.
ONDO Finance has currently cemented its dominance in the US Treasury, earning a membership slot at the Tokenized Asset Coalition (TAC) as summarized in our earlier news story.
Some Expected Merits of Ondo Finance’s Deployment of OUSG to the XRP Ledger
Ondo would deliver its yield-bearing investment, which is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), to the ledger. This indicates that XRPL would directly benefit from its inherent security which falls in line with the institutional focus of the XRPL. Fascinatingly, this particularly borders around compliance features such as Decentralized Identifiers (DIDs) and on-chain credential management.
With key features of the XRPL including advanced compliance tools like DIDs and Price Oracles, and upcoming innovations such as Multi-Purpose Tokens (MPTs) and Permissioned Domains, the XRPL’s infrastructure soundly complements OUSG’s benefits, providing a natural home for tokenized US Treasuries and positioning the XRPL as a cornerstone for institutional-grade financial solutions.
Another advantage of this collaboration is the high throughput, low fees, and reliability of XRPL, which makes it a favorable destination for tokenized RWA. Indirectly, this initiative is expected to impact the price of ONDO, which has been consolidating within a bearish range.
According to our market data, ONDO currently trades at $1.4 after surging by 4.5% in the last 24 hours. Interestingly, this decline is said to be linked to the broad market liquidations and the recent $3 billion unlocks. As featured in our recent coverage, analysts expect the asset to stage a rebound in the coming weeks.
