Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple Complete First Cross-Border, Cross-Bank Redemption of Tokenized U.S. Treasuries

• This pilot demonstrates coordination between public blockchain infrastructure and interbank settlement rails.
• Milestone establishes a framework for 24/7, near real-time cross-border settlement across global banks using Ondo tokenized assets.
• The XRP Ledger processed the asset leg of the transaction in under five seconds, supporting institutional-grade tokenized asset infrastructure operating globally and around the clock.

NEW YORK, May 6, 2026 /PRNewswire/ -- Ondo Finance today announced the successful completion of the first near real-time cross-border, cross-bank redemption of a tokenized U.S. Treasury fund. The pilot was conducted in collaboration with Kinexys by J.P. Morgan, Mastercard, and Ripple. This establishes a framework for 24/7, near real-time cross-border settlement across global banks for tokenized asset redemption.

As part of the pilot, Ripple redeemed tokenized assets issued on the XRP Ledger (XRPL), a public blockchain. The associated fiat settlement was triggered via the Mastercard Multi-Token Network (MTN), which enables interoperability between onchain assets and traditional fiat money, allowing traditional financial institutions to interact with onchain commerce. Fiat settlement execution was initiated on Kinexys by J.P. Morgan's blockchain infrastructure, which also supported onward instruction to J.P. Morgan's correspondent banking network for cross-border delivery of funds. 

The transaction represents a redemption of a tokenized treasury asset executed in near real-time, outside traditional cut-off windows, paired with cross-border transfer of funds triggered on blockchain infrastructure. One leg of the transaction occurred on a public blockchain, while the other settled on bank infrastructure. This is the first transaction of its kind between global financial institutions. 

Connecting Public Blockchains with Global Bank Infrastructure

As part of the pilot, Ripple redeemed a portion of its Ondo Short-Term U.S. Government Treasuries (OUSG) holdings on XRPL. Ondo processed the redemption and initiated a fiat payout instruction via the Mastercard MTN, which routed the instruction to Kinexys by J.P. Morgan. Kinexys debited Ondo's Blockchain Deposit Account and settled U.S. dollar proceeds to Ripple's bank account in Singapore via its correspondent banking network.

While tokenized real-world assets have grown significantly, redemption infrastructure has largely remained dependent on traditional wire systems, manual processes, and limited operating hours. This pilot demonstrates an integrated model in which blockchain-based asset redemption can trigger settlement without the need for siloed traditional infrastructures to initiate payment settlement.

The result is a unified transaction flow in which blockchain execution and traditional bank settlement operate in concert rather than requiring separate instructions.

"This milestone represents the first time tokenized U.S. Treasuries have settled across borders and banks in near real time and outside traditional banking windows," said Ian De Bode, President of Ondo Finance. "By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by J.P. Morgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close."

"This marks a meaningful step forward in demonstrating that tokenized assets can move seamlessly between public blockchain infrastructure and the global financial system," said Markus Infanger, SVP of RippleX. "The XRP Ledger enables real-time asset movement, and when paired with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions as a single, integrated flow."

Zack Chestnut, Global Head of Commercialization at Kinexys by J.P. Morgan, said, "This pilot is an important step towards establishing a framework for institutional-scale tokenized asset markets. To see widespread adoption of tokenized financial products, we need wholesale cross-industry collaboration across geographies, global banking infrastructure and public blockchains. We're excited to continue working with Ondo, Ripple and Mastercard to bring this to life."

"As tokenized assets continue to see strong institutional momentum and engagement, the focus is quickly shifting to how tokenized commerce can operate at scale in real time," said Raj Dhamodharan, executive vice president, Blockchain and Digital Assets at Mastercard. "With the Mastercard Multi‑Token Network, we're enabling near real‑time, cross‑border settlement using existing bank accounts—bringing coordination, trust, and interoperability to institutional on‑chain flows."

Advancing 24/7, Multi-Bank, Cross-Border Settlement

For tokenized financial products to operate at institutional scale, settlement infrastructure must function across banks and geographies outside traditional operating windows. This pilot demonstrates a practical framework for continuous, real-time coordination between transacting parties on public blockchains and global banking infrastructure.

The architecture framework is designed to support redemptions from any public blockchain on which OUSG is issued, including XRPL, providing a model for how Ondo tokenized assets can integrate with financial networks.

About Ondo Finance
Ondo Finance is a leading platform for tokenized real-world assets, bringing institutional-grade financial products onchain with a focus on compliance, transparency, and integration with the global financial system.

[*] OUSG tokens have not been registered under the US Securities Act of 1933, as amended (the "Act") or the securities or financial instrument laws of any other jurisdiction, and are available solely to persons who are accredited investors (as defined in Rule 501 of Regulation D under the Act) and qualified purchasers (as defined in Section 2(a)(51) of the US Investment Company Act of 1940, as amended (the "40 Act")). The issuer of OUSG is Ondo I LP, a Delaware (USA) limited partnership (the "Fund") is not registered as an investment company under the 40 Act or as an Alternative Investment Fund or Undertaking for Collective Investment in Transferable Securities in the European Economic Area, or under the securities or financial instrument laws of any other jurisdiction.

Ondo Finance Inc., a Delaware (USA) corporation, provides tokenization services to, and is also the sole member of both the general partner of the Fund and the investment adviser to the Fund, Ondo Capital Management LLC (the "Adviser"). The Adviser is a Registered Investment Adviser registered with the U.S. Securities and Exchange Commission ("SEC"). The Adviser's current written disclosure statement (Form ADV Part 2A) discussing its advisory services and fees is available upon request or at the SEC's Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov). Registration as an investment adviser does not imply a certain level of skill or training. The Adviser shall not be responsible for any errors or omissions, or for the results obtained from the use of the information provided by the Adviser, the Fund or any of their respective affiliates, control persons, agents or representatives.

The communications herein are only intended for eligible purchasers of, or for actual or potential business relationships or technical integrations with respect to, OUSG. Nothing herein constitutes any offer to sell, or any solicitation of an offer to buy, any assets. Nothing herein constitutes investment, legal, tax or financial advice. Acquiring tokens involves risks. A holder of tokens may incur losses, including total loss of their purchase price. Past performance may not be (and for the tokens will not be) an indication of future results. Investors are responsible for conducting their own research, investigation, verification, checks or consultation for professional or investment advice.

This communication may contain forward-looking statements, including, but not limited to, statements regarding future financial performance, business strategies, or expectations for Ondo Finance's growth and development. These statements are based on management's current expectations, estimates, projections, and beliefs, and are subject to a number of risks, uncertainties, and assumptions that could cause actual results to differ materially from those anticipated. Forward-looking statements can be identified by the use of terminology such as "may," "will," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or the negative of these terms or other similar expressions. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include, but are not limited to, the following: economic, competitive, legal, governmental, and technological factors affecting Ondo Finance's operations, markets, products, services, and prices. Neither Ondo Finance nor any of their respective affiliates undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

The OUSG issuer, its affiliates, their respective shareholders and members, and their respective directors, officers, employees, consultants, agents and representatives (the "Ondo Persons") do not endorse, the Ondo Persons do not make any representation or warranty whatsoever (express or implied, including but not limited to any warranty of merchantability, fitness for a particular purpose, or non-infringement) regarding, and THE ONDO PERSONS SHALL NOT HAVE ANY LIABILITY WHATSOEVER WITH RESPECT TO ANYONE'S USE OF, any third-party products, services or technologies referenced herein.

Additional terms and restrictions apply. See docs.ondo.finance/legal/terms-of-service, https://docs.ondo.finance/qualified-access-products/ousg, https://ondo.finance/ousg, app.ondo.financeand (as applicable) the Token offering documents for details.

SOURCE Ondo Finance