Ondo

OUSG

JPMorgan

JPMorgan and 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 routed settlement instructions to JPMorgan’s Kinexys platform, which delivered 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 <a href="https://x.com/OndoFinance/status/2052048815054627318" rel="noopener noreferrer nofollow">said</a> Wednesday.<img alt="JPMorgan, Mastercard make first cross-border US Treasury transfer via XRP Ledger" height="919" src="https://payload.cointelegraph.com/api/media/file/pasted-image-380.png?prefix=media%2Fcontent" width="684">Source: <a href="https://x.com/ben_grossman/status/2052050316657557700" rel="noopener noreferrer nofollow">Ben Grossman</a>The pilot reflects growing collaboration between crypto firms and TradFi institutions seeking to build faster, lower-cost, <a href="https://cointelegraph.com/news/openfx-raises-94m-stablecoin-fx-cross-border-payments" rel="noopener noreferrer nofollow">global payment</a> and settlement systems that run outside of traditional banking hours.The pilot builds on a May 2025 test involving JPMorgan and Ondo Finance, in which a tokenized Treasury fund <a href="https://www.prnewswire.com/news-releases/chainlink-kinexys-by-jp-morgan-and-ondo-finance-team-up-to-bring-bank-payment-rails-to-tokenized-asset-markets-302455268.html" rel="noopener noreferrer nofollow">moved</a> between public and permissioned blockchains.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.&nbsp;More than $31.1 billion worth of real-world assets, <a href="https://cointelegraph.com/news/stablecoins-will-be-cryptos-chatgpt-moment-ripple-garlinghouse" rel="noopener noreferrer nofollow">excluding stablecoins,</a> is currently tokenized onchain, according to RWA.xyz<a href="https://app.rwa.xyz/" rel="noopener noreferrer nofollow"> data</a>. Boston Consulting Group estimated in 2022 that the<a href="https://cointelegraph.com/news/australian-central-bank-backs-rwa-tokenisation-explores-digital-finance-sandbox" rel="noopener noreferrer nofollow"> tokenization market</a> could rise to $16 trillion by 2030, while McKinsey &amp; Co. said it could reach a more conservative $2 trillion over the same time frame.&nbsp;Related: <a href="https://cointelegraph.com/features/stablecoins-behave-fx-markets-liquidity-splits-eco-ceo" rel="noopener noreferrer nofollow">Stablecoins behave like FX markets as liquidity splits: Eco CEO</a>&nbsp;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.<h2 id="tokenization-needs-regulation-before-widespread-adoption">Tokenization needs regulation before widespread adoption</h2>Despite the developments, the International Monetary Fund <a href="https://cointelegraph.com/news/imf-tokenization-improves-finance-but-introduces-other-risks" rel="noopener noreferrer nofollow">flagged several concerns</a> 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.”&nbsp;The IMF added that without legal clarity over ownership records and settlement finality, tokenized markets risk being “fragmented and peripheral.”&nbsp;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.Magazine: <a href="https://cointelegraph-magazine.com/north-korea-denies-crypto-hacks-upbits-bank-tests-ripple-asia-express/" rel="noopener noreferrer nofollow">North Korea denies crypto hacks, Upbit’s bank tests Ripple: Asia Express</a>

JPMorgan, Mastercard make first cross-border US Treasury transfer via XRP Ledger

Table of Contents

Cointelegraph

Other articles published on May 7, 2026

Samsung SDS to build South Korea’s tokenized securities system

SlowMist Reports $174K AI Agent Exploit on Base Chain Highlights Trust Model Flaws

Matrixport-Linked Address Deposits $17.4M in HYPE to Hyperliquid, Begins Selling

CEE FX Under Pressure as Fiscal Divergence Widens, BNY Warns of Elevated Carry Risk

AUD/USD Holds Bullish Bias Near 0.7250 as US Dollar Weakens

Trump-linked American Bitcoin reports $82M Q1 loss, revenue miss

Join our free newsletter for daily crypto updates!