JPMorgan, Mastercard and Ripple settle tokenized Treasuries

On May 6, 2026 JPMorgan, Mastercard, Ripple and Ondo completed a pilot that redeemed Ondo Finance’s OUSG tokens on the public XRP Ledger and delivered U.S. dollars to Ripple’s bank account in Singapore. Settlement instructions moved through Mastercard’s Multi-Token Network to Kinexys, JPMorgan’s blockchain unit, which arranged the dollar payout.

Ondo processed the token redemption on the XRP Ledger. Mastercard’s Multi-Token Network forwarded settlement instructions to Kinexys, and Kinexys arranged for the corresponding dollar leg to be sent to Ripple’s Singapore bank. The dollar payment moved through the traditional banking system rather than being fully tokenized on-chain, creating a hybrid flow that combined blockchain messaging with regulated fiat channels. The firms reported the transaction settled across banks and borders in near real time and outside conventional banking hours.

The pilot linked an institutional tokenized-Treasury product to global banking infrastructure in a single integrated flow. OUSG is one of the larger tokenized Treasury offerings and was issued on the XRP Ledger earlier to broaden institutional access. JPMorgan described the test as a demonstration of using public-ledger settlement instructions while keeping fiat transfers within regulated banking rails.

Tokenized U.S. Treasuries account for roughly $15 billion of outstanding value, compared with about $30 trillion in the broader U.S. Treasury market, according to RWA.xyz. The tokenized segment has expanded since 2024 as banks and asset managers have trialed settlement on public chains. The Depository Trust & Clearing Corporation plans to launch a tokenization service in October with Treasury bills and bonds among eligible assets, and Nasdaq is preparing for tokenized stock and exchange-traded fund trading.

Kinexys has been used in projects covering foreign-exchange settlement, deposit tokens and corporate-dollar transfers. Ripple has added features to the XRP Ledger aimed at regulated users, including permissioned domains and zero-knowledge tools for privacy and compliance. Mastercard’s Multi-Token Network is designed to move tokenized-asset instructions among financial institutions.

Zack Chestnut, head of commercial at Kinexys by J.P. Morgan, called the pilot an important advance in building a framework for institutional-scale tokenized asset markets. Participants described the arrangement as an example of combining public blockchain rails and traditional banking systems to shorten settlement times while keeping fiat transfers on regulated rails.