What You Need to Know
- Ondo Finance has officially launched its tokenized U.S. Treasury offering, named OUSG, on the XRP Ledger targeted towards enterprise users.
- Tokenized treasuries are becoming a growing asset class that merges traditional finance with digital assets, enabling investors to use their on-chain funds to generate yields while serving as collateral.
- Following the announcement, the price of Ondo’s governance token (ONDO) increased by 4%.
Ondo Finance is a platform specializing in tokenizing real-world assets. Their $185 million U.S. Treasury token aims to enhance the offerings available for institutional sectors on the XRP Ledger. This OUSG token is supported by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and offers qualified investors the ability to mint and redeem tokens instantly using Ripple’s RLUSD stablecoin.
This deployment will go live within six months. Both Ripple, closely associated with the XRP Ledger, and Ondo Finance have made initial liquidity seed investments in the token, although they have not disclosed the amount invested.
The trend of tokenizing real-world assets (RWA) is rapidly growing as it aims to formalize traditional finance assets like bonds and funds on blockchain platforms for enhanced efficiency and faster settlements compared to standard banking practices.
Tokenized U.S. Treasury notes have surged in popularity, quadrupling over the past year to become a $3.5 billion asset class, according to rwa.xyz data.
Markus Infanger, Senior VP of RippleX, commented, “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. These low-risk, high-quality liquidity options not only provide better accessibility for investors but also introduce greater stability to blockchain-based markets.”
OUSG is the second tokenized treasury product on the XRP Ledger, following OpenEden’s TBILL. The OUSG was previously available on Ethereum, Polygon, and Solana.
UPDATE (Jan. 28, 14:00 UTC): Adds ONDO price advancements in the fourth paragraph.
