Ripple takes over US Treasuries with JPMorgan...XRP Ledger shakes up bank payment networks

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JPMorgan and Mastercard have completed the first cross-border, interbank redemption settlement of tokenized US Treasury funds, utilizing Ripple's XRP Ledger and interbank payment networks. The fact that major institutions in traditional finance and blockchain infrastructure jointly experimented with a real-time settlement structure makes the institutional entry into the real-world asset tokenization market even clearer.

Cointelegraph reported on the 7th that JPMorgan and Mastercard, in collaboration with Ondo Finance and Ripple, completed a pilot transaction for the redemption of a tokenized US Treasury fund. In this transaction, Ondo Finance's blockchain tokenization platform redeemed the US Ondo Short-Term US Government Treasuries (OUSG) fund from Ripple on the XRP Ledger. Subsequently, Mastercard's Multi-Token Network transmitted the payment instruction to JPMorgan's blockchain platform Kinexys, which then paid US dollars to Ripple's Singapore bank account.

Ondo Finance announced on Wednesday, "For the first time, a public blockchain and global banking infrastructure jointly settled a cross-border transaction of a tokenized fund in real-time." This pilot demonstrates the collaborative trend between crypto companies and traditional financial institutions to build faster and cheaper global payment and settlement systems that are not constrained by bank operating hours.

This OUSG transaction is an extension of a previous pilot conducted by JPMorgan and Ondo Finance in May 2025. At that time, the same tokenized US Treasury fund was transferred between a public blockchain and a permissioned blockchain network. Major Wall Street institutions are focusing on real-world asset tokenization, seeing the potential to tokenize various assets such as stocks, bonds, money market funds, and real estate.

According to RWA.xyz data, the volume of on-chain real-world asset tokenization, excluding stablecoins, currently exceeds $31.1 billion. Boston Consulting Group estimated in 2022 that the tokenization market could grow to $16 trillion by 2030, while McKinsey & Co. presented a more conservative estimate of $2 trillion for the same period. Intercontinental Exchange announced in January that it would launch a tokenization platform utilizing a blockchain-based back-office processing system to support 24-hour trading and instant settlement of stocks and exchange-traded funds.

However, regulatory alignment remains a key challenge for the expansion of the tokenization market. The International Monetary Fund pointed out in an April report that tokenization could shift risks from the banking system to shared ledgers and smart contract code, making intervention more difficult in times of stress. Kevin O'Leary said at Consensus Miami 2026 on Wednesday that large-scale capital will not be tokenized until a US crypto market structure bill is passed and Securities and Exchange Commission regulations are met. O'Leary stated, "When that happens, everything changes."

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