Blackrock-Backed Treasuries Arrive on XRP Ledger: Ripple Drives Institutional Adoption

CN
1 day ago

Ripple Labs announced on Jan. 28 a collaboration with Ondo Finance to bring tokenized U.S. Treasuries to the XRP Ledger (XRPL). The collaboration introduces Ondo Short-Term U.S. Government Treasuries (OUSG), which are backed by the Blackrock USD Institutional Digital Liquidity Fund (BUIDL). According to Ripple:

Through this collaboration, institutional investors will gain access to Ondo Short-Term U.S. Government Treasuries (OUSG), backed by the Blackrock USD Institutional Digital Liquidity Fund (BUIDL), which can be instantaneously minted and redeemed 24/7 using Ripple USD (RLUSD), an enterprise-grade, USD-denominated stablecoin.

The initiative builds on Ripple’s ongoing investments in tokenized treasuries and seeks to enhance the adoption of real-world assets on blockchain platforms.

Tokenized U.S. Treasuries like OUSG continue to attract institutional investors due to their ability to provide liquidity, efficiency, and transparency. Ripple highlighted the XRPL’s compliance-first design and infrastructure, which are key to ensuring secure and reliable financial transactions.

Addressing the demand for enhanced institutional solutions, Ripple stated:

By bringing OUSG to the XRPL, Ondo Finance is bringing institutional-grade assets directly to the institutions, providing broad onchain accessibility, and changing how institutions interact with tokenized assets as flexible treasury management tools.

This focus on compliance and security is bolstered by the XRPL’s decentralized identifiers (DIDs) and onchain credential management. Ripple’s senior vice president of Ripplex, Markus Infanger, called this a “transformative shift in capital flow management,” emphasizing the advantages of 24/7 settlement and greater market stability.

Katie Wheeler, vice president of partnerships at Ondo, stated that integrating OUSG on the XRPL brings together a “compliance-first, yield-bearing product with a network purpose-built for institutional adoption.” The XRPL’s scalable technology, low fees, and robust ecosystem are driving its emergence as a trusted platform for tokenized assets and decentralized finance (defi).

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