Financial giants JPMorgan and Mastercard have successfully completed the first cross-border, cross-bank redemption of a tokenized U.S. Treasury fund in real time. The pilot leveraged Ripple‘s XRP Ledger and Ondo Finance‘s platform to settle the transaction, which involved the OUSG fund, marking a milestone in blending public blockchain technology with traditional banking infrastructure for global payments.
A pilot transaction has successfully completed the first cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. The collaboration involved JPMorgan, Mastercard, Ripple, and tokenization platform Ondo Finance.
Ondo Finance redeemed its US Ondo Short-Term US Government Treasuries (OUSG) fund for Ripple on the XRP Ledger. Mastercard‘s Multi-Token Network then routed settlement instructions to JPMorgan‘s blockchain platform, Kinexys, to deliver U.S. dollars to a Singapore bank account.
“For the first time, a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund together in real time,” Ondo Finance stated. This pilot reflects growing efforts between crypto firms and traditional financial institutions to build faster, global payment systems.
The test builds on an earlier pilot from May 2025 where the same tokenized fund was moved across public and permissioned blockchains. Interest in tokenizing real-world assets like stocks and bonds continues to grow among Wall Street leaders.
More than $31.1 billion worth of real-world assets, excluding stablecoins, is currently tokenized onchain according to data from RWA.xyz. Different consulting firms have projected the tokenization market could reach between $2 trillion and $16 trillion by 2030.
Despite progress, regulatory hurdles remain. The International Monetary Fund flagged concerns in an April report, stating tokenization shifts risk to shared ledgers and smart contracts. The IMF added that without legal clarity, tokenized markets risk being fragmented.
Investor Kevin O’Leary echoed these concerns at a recent conference. He stated significant capital will not be tokenized until crypto market structure legislation is passed in the U.S. and is compliant with Securities and Exchange Commission rules.
