JPMorgan, Mastercard and Ripple Settle Tokenized Treasury

JPMorgan, Mastercard, Ripple and Ondo Finance completed a pilot on May 6, 2026 that settled a redemption of Ondo Short-Term US Government Treasuries (OUSG) tokens on the public XRP Ledger. JPMorgan routed the corresponding U.S. dollar payment to Ripple’s bank account in Singapore in near real time, and the firms said the transaction settled across banks and borders outside normal banking hours.

Ondo processed the OUSG redemption on the public XRP Ledger. Mastercard’s Multi-Token Network forwarded settlement instructions to Kinexys, J.P. Morgan’s blockchain unit. Kinexys then arranged the dollar transfer through JPMorgan’s traditional banking channels to Ripple’s account in Singapore. The dollar leg moved off-chain through regulated banking rails rather than on the public ledger.

The pilot combined a public blockchain settlement layer with existing global banking infrastructure to create a direct flow from token redemption to fiat delivery. Mastercard managed message routing between the ledger and bank networks while Kinexys handled the fiat settlement.

OUSG is among the larger tokenized Treasury products and was issued on the XRP Ledger earlier this cycle to broaden institutional access. Tokenized U.S. Treasuries account for roughly $15 billion in outstanding value, compared with about $30 trillion in the overall Treasury market. The Depository Trust & Clearing Corporation plans to launch a tokenization service in October that will include Treasury bills and bonds, and Nasdaq has been preparing for tokenized stock and ETF trading.

For JPMorgan, the pilot follows Kinexys deployments covering foreign-exchange settlement, deposit tokens and corporate-dollar transfers. Ripple has developed the XRP Ledger with permissioned domains and zero-knowledge tooling aimed at regulated users. Mastercard has expanded its Multi-Token Network to link digital-asset messaging with banking partners.

Zack Chestnut, head of commercial at Kinexys by J.P. Morgan, called the pilot “an early framework for institutional-scale tokenized asset markets.” A Ripple statement described the test as combining the XRP Ledger with global banking infrastructure to let institutions execute cross-border transactions in an integrated flow. The firms did not disclose the dollar amount of the specific redemption.