Wall Street bank JPMorgan and credit card giant Mastercard said they have completed the first cross-border, cross-bank redemption of a tokenized US Treasury fund, working with Ripple’s XRP Ledger and interbank settlement rails.
The pilot transaction involved blockchain tokenization platform Ondo Finance redeeming the US Ondo Short-Term US Government Treasuries (OUSG) fund for Ripple on the XRP Ledger. Mastercard’s Multi-Token Network then routed the settlement instructions for JPMorgan’s blockchain platform, Kinexys, to deliver US dollars to Ripple’s 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 said Wednesday.
Source: Ben Grossman
The pilot reflects growing collaboration between crypto firms and TradFi institutions seeking to build faster, lower-cost, global payment and settlement systems that run outside of traditional banking hours.
The pilot involving OUSG builds on an earlier one in which JPMorgan and Ondo Finance participated in May 2025, when the tokenized US Treasury fund was moved across a public and permissioned blockchain network.
Real-world asset tokenization has drawn growing interest from Wall Street leaders, who envision tokenizing everything from stocks and bonds to money market funds and real estate.
More than $31.1 billion worth of real-world assets, excluding stablecoins, is currently tokenized onchain, according to RWA.xyz data. Boston Consulting Group estimated in 2022 that the tokenization market could rise to $16 trillion by 2030, while McKinsey & Co. said it could reach a more conservative $2 trillion over the same time frame.
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The New York Stock Exchange’s parent, Intercontinental Exchange, announced in January that it would launch a tokenization platform for 24/7 trading and instant settlement of stocks and exchange-traded funds using a blockchain post-trade system, marking one of the biggest developments in the tokenization space to date.
Tokenization needs regulation before widespread adoption
Despite the developments, the International Monetary Fund flagged several concerns in an April report, including that tokenization shifts risk from the banking system to shared ledgers and smart contract code, making it more difficult to intervene during “stress events.”
The IMF added that without legal clarity over ownership records and settlement finality, tokenized markets risk being “fragmented and peripheral.”
Shark Tank investor Kevin O’Leary aired these concerns on Wednesday at Consensus Miami 2026, saying that significant capital will not be tokenized until crypto market structure legislation is passed in the US and is compliant with Securities and Exchange Commission rules.
“When that occurs, it’s going to change everything,” O’Leary said at the conference.
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