Ondo Finance Brings Tokenized Treasuries to XRP Ledger, Expanding Institutional DeFi Opportunities

On June 11, 2025, Ondo Finance announced the launch of its flagship tokenized U.S. Treasury fund, Ondo Short-Term U.S. Government Treasuries (OUSG), on the XRP Ledger (XRPL).

This launch aligns with the optimistic stance towards DeFi expressed by the SEC’s new Chairman, Paul S. Atkins, during his speech at the roundtable on June 9. This marks a significant milestone in the integration of traditional finance and DeFi, as it introduces institutional-grade financial instruments to the XRPL ecosystem.

https://x.com/OndoFinance/status/1932775406957994403

Pioneering Institutional Finance on XRPL

This is a first for XRPL:

• Seamless settlement between OUSG and RLUSD

• Onchain US treasuries exposure for institutions

• RLUSD utility beyond payments

Ondo Finance continues to lead the way in real-world asset tokenization, boasting over $1.3 billion in TVL across its ecosystem. OUSG stands out as the first tokenized security to achieve material adoption, with over $690 million in TVL, making it one of the largest tokenized Treasury products in the market.

The fund’s portfolio includes investments in renowned institutional-grade liquidity funds such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), Franklin Templeton, WisdomTree, and FundBridge.

https://x.com/RippleXDev/status/1932980838087459271

Markus Infanger, Senior Vice President of RippleX, emphasized the importance of this integration: “Ondo’s OUSG going live on the XRPL demonstrates that tokenized finance is no longer theoretical; it’s maturing in real markets. Institutions can now access high-quality assets like U.S. Treasuries on public blockchains, with the compliance and efficiency they need. This represents progress in bringing trusted financial assets into a 24/7 market—enabling greater liquidity, operational efficiency, and faster access to capital”.

Ian De Bode, Chief Strategy Officer at Ondo Finance, also highlighted the broader implications: “Bringing OUSG to XRPL with RLUSD as a settlement option broadens access to high-quality, onchain financial instruments. This integration strengthens our commitment to providing reliable and institutional-grade assets at the intersection of traditional finance and DeFi” .

Ripple's Ethereum-Compatible Sidechain to Launch on XRP Ledger in Q2

At the ongoing APEX 2025 conference in Singapore, Jaazi Cooper, Director of Product Management at Ripple, and David Schwartz, Ripple's Chief Technology Officer, announced that the Ethereum Virtual Machine (EVM)-compatible sidechain for the decentralized Layer 1 blockchain XRP Ledger (XRPL) is set to go live in the second quarter of 2025.

This sidechain aims to bridge the gap between Ethereum-based decentralized applications (dApps) and the XRP Ledger’s low-cost, high-speed transaction capabilities.

https://x.com/RippleXDev/status/1932450861361529201

David Schwartz revealed that the EVM sidechain will support Ethereum smart contracts and applications while connecting to the XRPL mainnet via Axelar’s bridging technology. This integration is expected to enhance the XRPL ecosystem by enabling the use of wrapped XRP as the native gas token on the sidechain.

The EVM sidechain has already been deployed on a testnet, showing rapid growth and readiness for a mainnet launch. Contributors Ripple and Peersyst are leveraging the evmOS software stack to ensure the sidechain’s compatibility and efficiency. Once live, it will provide developers with new opportunities to build DeFi applications and smart contracts using Ethereum’s robust framework while benefiting from XRPL’s scalability and low transaction costs.

Broader Implications for the XRP Ledger Ecosystem

The combined developments of Ondo Finance’s OUSG launch on XRPL and Ripple’s upcoming EVM-compatible sidechain highlight the growing maturity and innovation within the XRP Ledger ecosystem. These advancements not only enhance XRPL’s appeal to institutional investors but also open new doors for decentralized application development, solidifying its position as a leading blockchain platform for financial use cases.

Additionally, Guggenheim Treasury Services recently pioneered the launch of a $280 million digital commercial paper product on the XRP Ledger, further showcasing the platform’s growing adoption in tokenized real-world assets.