Ripple and OndoFinance Unveil Tokenized U.S. Treasuries on the XRP Ledger.
Ripple and OndoFinance are coming together to introduce tokenized U.S. Treasuries to the XRP Ledger (XRPL), and also provide institutional investors with a new class of financial assets.
This new product is called Ondo Short-Term U.S. Government Treasuries (OUSG), and is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
According to the press release, investors can mint and redeem OUSG tokens any time using Ripple USD (RLUSD), a stablecoin tied to the U.S. dollar.
The team seeks to introduce more institutional-grade products on the XRPL. Through Ripple and Ondo, large investors can access U.S. Treasuries in a secure way. The OUSG tokens are backed by short-term U.S. Treasuries and follow strict KYC and AML rules to stay regulated
Both companies will provide liquidity for OUSG at launch. The market for tokenized U.S. Treasuries is expanding rapidly because there is greater demand for liquidity and because capital markets are becoming more efficient. Some predict this market could reach $16 trillion by 2030.
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