What You Should Know:

• Ondo Finance has launched its Ondo Short-Term U.S. Government Treasuries (OUSG) token on the XRP Ledger, providing institutional investors with innovative blockchain-based cash management solutions.
• This initiative aligns with the increasing interest in real-world assets like bonds and real estate on blockchain platforms.
• Qualified investors can mint and redeem OUSG using Ripple’s RLUSD stablecoin, starting with an initial $30 million supply.

Ondo Finance has introduced its flagship treasury-backed token on the XRP Ledger, a move expected to enhance financial management for institutional investors. Users can continually mint or redeem the Ondo Short-Term U.S. Government Treasuries (OUSG) token via Ripple’s stablecoin, RLUSD, starting with a liquidity-focused initial supply of $30 million.

The market for tokenized U.S. Treasuries has surged to $7.2 billion, an increase from $1.7 billion last year, as reported by rwa.xyz.

These types of products have enabled investors to utilize their idle cash effectively while remaining within the blockchain environment, allowing for consistent earnings independent of the crypto market fluctuations, similar to money market funds.

OUSG, holding a total supply of $693 million, ranks as the third-largest token of its kind after BlackRock’s BUIDL and Franklin Templeton’s BENJI, according to data from rwa.xyz.

Such offerings reflect the XRP Ledger’s ambition to establish itself as a center for tokenized asset trading. Recently, Guggenheim Treasury Services revealed plans to issue Digital Commercial Paper on the XRP network, and Dubai has initiated a tokenization platform for real estate, aiming for a $16 billion market goal.