Wall Street bank JPMorgan and credit card giant Mastercard announced they have completed the first cross-border, interbank buyout of a tokenized U.S. Treasury fund, partnering with Ripple’s XRP Ledger and interbank settlement rails.
The pilot transaction involved blockchain tokenization platform Ondo Finance listing the Ondo Short-Term US Government Treasuries (OUSG) fund for Ripple on the XRP ledger. The Multi-Token Mastercard network then passed settlement instructions to JPMorgan’s blockchain platform, Kinexys, to deliver US dollars to Ripple’s Singapore bank account.
“For the first time, public blockchain and global banking infrastructure have jointly settled a cross-border transaction of a tokenized fund in real time,” Ondo Finance he said Wednesday.
Source: Ben Grossman
The pilot reflects growing collaboration between crypto companies and TradFi institutions looking to build faster, cheaper, global payment and settlement systems that operate outside of customary banking hours.
The pilot with OUSG builds on an earlier one in which JPMorgan and Ondo Finance participated in May 2025, when a tokenized U.S. Treasury fund was moved in a public and authorized blockchain network.
The tokenization of real-world assets has attracted growing interest from Wall Street leaders, who envision tokenization of everything from stocks and bonds to money market funds and real estate.
According to RWA.xyz, over $31.1 billion in assets are currently tokenized on the network, excluding stablecoins. data. Boston Consulting Group estimated in 2022 that the tokenization market could grow to $16 trillion by 2030, while McKinsey & Co. it said it could reach a more conservative $2 trillion over the same period.
Related: Stablecoins behave like currency markets when liquidity is shared: CEO of Eco
The parent company of the New York Stock Exchange, Intercontinental Exchange, announced in January that it would launch a tokenization platform for 24/7 trading and instant settlement of exchange-traded stocks and funds using a blockchain post-trade system, marking one of the biggest developments in the tokenization space to date.
Tokenization requires regulation before widespread adoption
Despite the development, the International Monetary Fund raised several concerns in its April report, including that tokenization shifts risk from the banking system to shared ledgers and shrewd contract code, making it more hard to intervene during “stress events.”
The IMF added that without legal clarity on ownership records and settlement finality, tokenized markets risk becoming “fragmented and peripheral.”
Shark Tank investor Kevin O’Leary shared these concerns on Wednesday during Consensus Miami 2026, saying that significant capital will not be tokenized until cryptocurrency market structure regulations are passed in the U.S. and are compliant with Securities and Exchange Commission regulations.
“When that happens, everything will change,” O’Leary said at the conference.
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