JPMorgan, Mastercard Transfer US Treasuries on XRP Ledger
Wall Street bank JPMorgan and credit card giant Mastercard say they have completed the first cross-border, cross-bank redemption of US Treasury funds, working with Ripple's XRP Ledger and interbank settlement rails.
A pilot transaction on the XRP Ledger for Ripple's blockchain tokenization platform includes the redemption of US Ondo Short-Term US Government Treasuries (OUSG). Mastercard's multi-token network has turned to JPMorgan's blockchain platform Kinex for settlement instructions to deliver US dollars to Ripple's Singapore bank account.
“For the first time, a public blockchain and a global banking infrastructure to settle a tokenized fund together in real time cross-border transactions,” Ondo Finance said on Wednesday.
Source: Ben Grossman
The pilot demonstrates the growing collaboration between crypto companies and TradFi institutions looking to build fast, low-cost, global payments and settlement systems that work outside of traditional banking hours.
A pilot involving the OUSG will be built earlier in May 2025 involving JPMorgan and Ondo Finance, when US Treasury funds will be moved through a public and permissioned blockchain network.
A real-world asset token has attracted increasing interest from Wall Street leaders.
More than $31.1 billion worth of real-world assets, excluding stablecoins, have currently been exchanged onchain, according to RWA.xyz data. Boston Consulting Group The token market, estimated by 2022, could increase to $16 trillion by 2030, McKinsey & Co. At the same time, he said, a more conservative $2 trillion could be reached.
Related: Stablecoins are like FX markets when liquidity is distributed: Eco CEO
New York Stock Exchange parent Intercontinental Exchange announced in January that it will launch a token platform for 24/7 trading and instant exchange of stock and exchange funds using a blockchain post-trade system, one of the biggest developments in the tokenization space to date.
Tokenization needs regulation before it can be widely implemented
Despite the progress, the International Monetary Fund pointed out a number of concerns in an April report, saying that the token would shift risk from the banking system to shared ledgers and smart contract code, making it more difficult to intervene in times of “stress conditions.”
The IMF added that without legal transparency in ownership records and settlement summaries, tokenized markets could become “fragmented and interconnected”.
Shark Tank investor Kevin O'Leary raised these concerns on Wednesday at Consensus Miami 2026, saying that the crypto market structure in the US will not be a significant token of capital until it is enacted and complies with Securities and Exchange Commission rules.
“When that happens, it changes everything,” O'Leary said at the conference.
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