JPMorgan, Mastercard Settle Treasury on XRP Ledger
JPMorgan and Mastercard demonstrated real-time cross-border settlement of tokenized US Treasury funds on XRP Ledger outside traditional banking hours, marking a breakthrough for institutional blockchain adoption.
Key Takeaway
Wall Street banks just proved tokenized Treasury settlement works in real time on public blockchains.
Ondo Finance announced Wednesday that JPMorgan, Mastercard, and Ripple completed the first cross-border, cross-bank redemption of a tokenized US Treasury fund using XRP Ledger. Mastercard's Multi-Token Network routed settlement instructions to JPMorgan's Kinexys blockchain platform, which delivered US dollars to Ripple's Singapore bank account. Ondo Finance said this marks the first time a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund together in real time.
The pilot follows an earlier test in May 2025 when JPMorgan and Ondo Finance moved the tokenized Treasury fund across a public and permissioned blockchain network. Real-world assets excluding stablecoins currently total ₱1.89 trillion ($31.1 billion) onchain, according to RWA.xyz data. Boston Consulting Group estimated in 2022 that tokenization could reach ₱974.14 trillion ($16 trillion) by 2030, while McKinsey & Co. projected a more conservative ₱121.77 trillion ($2 trillion).
Regulatory clarity remains the biggest barrier to institutional adoption. Shark Tank investor Kevin O'Leary told the Consensus Miami 2026 conference Wednesday that capital will not be tokenized until crypto market structure legislation passes in the US and complies with Securities and Exchange Commission rules. O'Leary said when that occurs, it's going to change everything.
The International Monetary Fund flagged concerns in an April 2026 report that tokenization shifts risk from the banking system to shared ledgers and smart contract code, making intervention during stress events more difficult. Without legal clarity over ownership records and settlement finality, the IMF warned that tokenized markets risk being fragmented and peripheral. XRP traded at $1.40 on Wednesday, up 2.11%.
This article was written based on reporting from Cointelegraph.
