JPMorgan, Mastercard, Ondo Finance, and Ripple took a notable step in institutional blockchain adoption after they successfully processed the first cross-border, cross-bank redemption of a tokenized US Treasury fund on the XRP network with the traditional banking settlement system.
The pilot transaction illustrated the possibilities of the integration of public blockchain networks with traditional banking systems in near real-time for global financial settlements.
In the deal, Ondo Finance sells its tokenized US Treasury product called the Ondo Short-Term US Government Treasuries (OUSG) fund to Ripple on the XRP Ledger.
Mastercard's Multi-Token Network was used as the interoperability layer to facilitate settlement instructions between blockchain infrastructure and JPMorgan's Kinexys platform. Kinexys then made US dollar funds available to Ripple in their Singapore bank account.
The transaction closed within five seconds of settlement, the companies said, showing the ability to settle international transactions quickly outside of traditional banking hours.
Ondo Finance said, “This milestone represents the first time tokenized US Treasuries have settled across borders and banks in near-real time and outside traditional banking windows.”
The company added, “By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by JPMorgan, Mastercard, and Ripple are laying the groundwork for 24/7 global markets that never close.”
The pilot builds on an earlier collaboration between JPMorgan and Ondo Finance in May 2025, which involved the transfer of tokenized Treasury assets from public to permissioned blockchain networks.
Tokenization has been a booming market over the last several years. According to RWA.xyz, over $31.1 billion worth of real-world assets, excluding stablecoins, are currently tokenized on-chain.
Consulting firms also forecast growth in the future. In 2022, Boston Consulting Group estimated that the tokenization market would be valued at $16 trillion by 2030, while McKinsey & Company's research projected a more conservative $2 trillion market opportunity during the same time period.
Meanwhile, tokenized finance's institutional ecosystem is rapidly expanding in parallel. JPMorgan’s platform Kinexys has already processed over $3 trillion in transaction volume, the bank's website said.
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The interoperability between the public blockchain infrastructure and conventional banking was one of the major aspects of the pilot.
The deal shows how tokenized assets can be “seamlessly between public blockchain infrastructure and the global financial system”, said Markus Infanger.
The Multi-Token Network (MTN) from Mastercard stood out as a pivotal component, facilitating the interaction between tokenized on-chain assets and fiat settlement systems.
Even with the momentum growth, tokenized financial markets remain subject to regulatory concerns.
In an April report, the International Monetary Fund cautioned that tokenization may transfer risks from banks to the smart contract system and shared ledgers, making it more difficult to intervene during financial crises.
At Consensus Miami 2026, Kevin O'Leary also emphasized the need for regulatory clarity, noting that large-scale institutional tokenization would ramp up once there is detailed legislation that regulates the US crypto market.