Ondo Finance expands institutional investment options by introducing tokenized US Treasuries on XRP Ledger, backed by BlackRock’s Digital Liquidity Fund.
Ondo Finance is launching tokenized US Treasuries on the XRP Ledger (XRPL), offering institutional investors a new way to invest in Ondo Short-Term US Government Treasuries (OUSG). Backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), OUSG can be conveniently bought or redeemed at any time using Ripple USD. This partnership bridges traditional finance with the blockchain space.
OUSG on the XRP Ledger is backed by short-term US Treasuries and adheres to necessary regulatory compliance, including KYC and AML standards. Additionally, the XRP Ledger’s efficient and scalable infrastructure enables easy access to liquidity and seamless digital asset transactions.
XRP Ledger’s Role in Institutional Financial Services
The team emphasized that OUSG and RLUSD provide institutions with secure liquidity options, simplifying portfolio management and access to tokenized US Treasuries. The XRP Ledger’s fast and low-cost system ensures smooth real-world asset trading and tokenization.
The Vice President of Partnerships at Ondo Finance stated that the integration of OUSG on the XRP Ledger combines a trusted blockchain with a regulated, yield-focused product. She noted that this move helps institutions lead the way in developing on-chain capital markets.
Markus Infanger, Senior Vice President at RippleX, explained that the ability to settle transactions at any time with tokenized assets like OUSG is a major advancement, surpassing the limitations of traditional trading hours. He added that the collaboration with Ondo Finance supports the growth of DeFi and enhances the XRPL’s role in institutional financial services.
“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,” said Markus Infanger. “These low-risk, high-quality liquidity options not only provide better accessibility for investors but also introduce greater stability to blockchain-based markets. By addressing key barriers with Ondo Finance, this innovation supports the broader adoption of DeFi and positions the XRPL as a cornerstone for institutional-grade financial solutions.”
Ripple’s Ongoing Investment in Tokenized Assets Amid Criticism
Ripple’s continued focus on tokenized US Treasuries is reinforced by its earlier investment in OpenEden’s TBILL. The collaboration with Ondo aims to enhance OUSG liquidity at launch, fostering broader adoption of tokenized assets on the XRP Ledger.
Predictions indicate that the tokenized market could reach $16 trillion by 2030. This growth is not surprising, as the demand for tokenized US Treasuries is growing rapidly, with institutions seeking better liquidity and transparency in capital markets. The XRP Ledger is well-equipped to bring traditional financial assets to the blockchain.
Ripple has recently faced criticism from some, including Pierre Rochard, Vice President of Research at Riot Platforms, who argued that Ripple has the ability to manipulate the XRPL. He claimed that Ripple could adjust escrow locks or flood the market with additional BTC $94 857 24h volatility: 0.0% Market cap: $1.88 T Vol. 24h: $23.49 B tokens, potentially undermining the decentralization of XRP XRP $2.24 24h volatility: 2.2% Market cap: $130.70 B Vol. 24h: $2.44 B and creating risks for the ecosystem. This argument was countered by Ripple CTO David Schwartz, who noted that Ripple operates on a consensus algorithm, not proof of work. He added that XRPL validators do not receive compensation, reducing the likelihood of manipulation.
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