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\n\t\t\t\t\t\t\t\t\tThe pilot linked XRPL to global banking infrastructure, enabling institutions to execute cross-border transactions in a single, integrated flow.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Blockchain settlement rails are increasingly becoming intertwined with the global financial system. A group of firms recently achieved a feat that could introduce 24\/7 settlements for traditional financial markets.<\/p>\n
According to a tweet<\/a>, the tokenization platform Ondo Finance, card services provider Mastercard, and JP Morgan\u2019s blockchain platform, Kinexys, are involved in achieving the latest milestone. The companies successfully completed a pilot transaction that connected Ripple\u2019s XRP Ledger (XRPL) with interbank settlement rails.<\/p>\n The pilot linked XRPL to global banking infrastructure, enabling institutions to execute cross-border transactions in a single, integrated flow. The assets used for the project were tokenized U.S. Treasury bills. The feat marked the first time tokenized Treasuries were settled across borders in near real time, outside traditional banking hours.<\/p>\n The process entailed Ondo processing Ripple\u2019s redemption of the Ondo Short-Term U.S. Government Treasuries (OUSG) first. Mastercard routed instructions to Kinexys through its multi-token network, while JP Morgan delivered USD to Ripple\u2019s Singapore bank account.<\/p>\n Completed in under five seconds, rather than the usual one to three business days, the pilot transaction highlighted a hybrid model in which XRPL handled the asset token movement while traditional banking rails facilitated fiat settlement.<\/p>\n \u201cTokenized assets are no longer separate from the global financial system. For the first time, a public blockchain and global banking infrastructure settled a cross-border transaction of a tokenized fund together in real time. Together, we\u2019re laying the groundwork for 24\/7 global markets that never close,\u201d Ondo Finance stated<\/a>.<\/p>\n<\/blockquote>\n With Treasuries moving like crypto on settlement rails that do not have closing hours, the $30 trillion U.S. Treasury market could be opened to a new wave of investors. Multiple financial institutions, including Wall Street\u2019s biggest firms, are already scrambling<\/a> to get on this bandwagon.<\/p>\n Besides Treasuries, these institutions are also attempting to tokenize bonds and deposits. A few days ago, the Depository Trust & Clearing Corporation (DTCC) announced plans to launch a new tokenization service for bonds and Treasuries in October.<\/p>\n Meanwhile, the tokenized stocks sector has witnessed massive growth over the past year. In fact, the market cap of the tokenized real-world assets (RWAs) sector as a whole more than tripled<\/a> from $5.42 billion to $19.32 billion in the last 15 months ending March 2026. The sector grew so well that it outperformed stablecoins.<\/p>\nXRPL Linked to Interbank Settlement Rails<\/h2>\n
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The Rise of Tokenization on Wall Street<\/h2>\n
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