Ripple, Ondo Test XRP Ledger Settlement With JPMorgan Bank Rails

Key Insights:

• XRP Ledger handled Ripple’s OUSG redemption in Ondo’s pilot.
• JPMorgan’s Kinexys delivered USD to Ripple’s Singapore bank account.
• The pilot links tokenized treasuries with bank settlement rails.

Ondo Finance and Ripple put XRP Ledger back into institutional settlement discussions after a near-real-time tokenized Treasury fund exchange. The pilot involved Kinexys by J.P. Morgan and Mastercard. Ripple redeemed OUSG on the network, while the related cash leg moved through bank payment rails.

The test arrived as the XRP price traded near $1.43. It matters because the transaction joined a public blockchain, tokenized treasuries, card-network messaging, and correspondent banking. That mix provides institutions with a practical model for cross-border settlement outside normal banking hours.

XRP Ledger Pilot Now Connects Ondo Fund to Bank Rails

The pilot focused on the Ondo Short-Term U.S. Government Bond Fund, known as OUSG. Ripple redeemed the tokenized fund position held on the XRP Ledger. Ondo then processed the redemption and passed fiat payment instructions through Mastercard’s Multi-Token Network.

XRP Ledger Pilot | Source: X

Kinexys by J.P. Morgan handled the settlement leg. It delivered U.S. dollars to Ripple’s bank account in Singapore through the bank’s correspondent network. The structure kept the tokenized asset leg onchain while the dollar leg moved through regulated banking infrastructure.

That design shows why banks view tokenization as a practical bridge, not a full replacement. A fund token can be moved across a public network at any time. The cash settlement still requires bank accounts, compliance controls, and payment instructions.

XRP Ledger Brings Tokenized Treasuries Near Bank Money

Ondo said the pilot marked the first time tokenized U.S. Treasuries were settled across borders and banks in near real time. It places XRP Ledger inside an institutional route involving large financial brands.

The timing also aligns with Wall Street’s broader tokenization push. J.P. Morgan, BlackRock, BNY, Franklin Templeton, and other firms keep testing tokenized funds and blockchain settlement. U.S. Treasuries are also important, as they underpin global cash management, liquidity, and collateral markets.

For institutions, tokenized treasuries can provide greater than crypto exposure. They can facilitate quicker subscription, redemption, intraday liquidity, and clean records. However, large investors still need banking links before they can use these products at scale.

That is where this pilot matters. Mastercard routed payment instructions through its Multi-Token Network, while Kinexys moved the dollar proceeds. Ondo handled the fund redemption, and Ripple supplied the live use case through OUSG.

The test also gives XRP Ledger a visible role in real-world asset settlement. That role matters as tokenized funds seek trusted exits into bank money.

XRP Price Rebound Adds Market Context to Settlement Test

The test also comes as XRP price momentum improves. TradingView data shows XRP is trading near $1.43, up 1% over the last 24 hours. That move helped the token reclaim short-term support after weeks of uneven trading.

ETF demand has improved. XRP spot ETF inflows reportedly rose to $11.28 million on Tuesday from $3.87 million a day earlier. Cumulative inflows stood near $1.31 billion, while net assets averaged about $1.09 billion.

Derivatives activity showed a smaller but positive move. Futures open interest rose near $2.59 billion, still far below July’s $10.94 billion peak. That gap suggests the recovery has not reached the same leverage levels seen near XRP’s record high.

XRP/USD 1-day chart | Source: TradingView

Technical levels now carry weight. XRP trades above the 50-day EMA near $1.41, giving bulls a support area. The next resistance sits around the 100-day EMA at $1.51, followed by trendline resistance near $1.57.

A move through those levels would strengthen the recovery case. Failure to hold $1.41 could return attention to deeper support near $1.32. If follow-up transactions repeat this route, tokenized treasuries could gain a stronger template for cross-border fund settlement.

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