Blockchain Pilot Unlocks 24/7 Treasury Liquidity

A near real-time cross-border, cross-bank redemption of a tokenized U.S. Treasury fund was successfully completed in a pilot conducted by Ondo Finance, Kinexys by J.P. Morgan, Mastercard and Ripple.

The achievement demonstrates coordination between public blockchain infrastructure and interbank settlement rails, and it establishes a framework for 24/7 cross-border settlement across global banks using Ondo tokenized assets, the companies said in a Wednesday (May 6) press release.

The pilot included Ripple redeeming tokenized assets issued on the XRP Ledger (XRPL) public blockchain; the Mastercard Multi-Token Network (MTN) triggering the associated fiat settlement and enabling interoperability between on-chain assets and traditional fiat money; and the Kinexys by J.P. Morgan blockchain infrastructure initiating fiat settlement execution and supporting onward instruction to J.P. Morgan’s correspondent banking network for cross-border delivery of funds, according to the release.

This integrated model eliminates the need for the traditional wire systems, manual processes and limited operating hours upon which redemption infrastructure has depended, per the release.

Ondo Finance President Ian De Bode said in the release: “By connecting public blockchain infrastructure with interbank settlement rails, Ondo, Kinexys by J.P. Morgan, Mastercard and Ripple are laying the groundwork for 24/7 global markets that never close.”

RippleX Senior Vice President Markus Infanger said: “The XRP Ledger enables real-time asset movement, and when paired with global banking infrastructure, this pilot shows how institutions can execute cross-border transactions as a single, integrated flow.”

Zack Chestnut, global head of commercialization at Kinexys by J.P. Morgan, said the pilot has brought to life the kind of wholesale cross-industry collaboration that is needed to enable widespread adoption of tokenized financial products.

Raj Dhamodharan, executive vice president, blockchain and digital assets at Mastercard, said in the release that the Mastercard Multi-Token Network enables real-time, cross-border settlement using existing bank accounts, “bringing coordination, trust and interoperability to institutional on-chain flows.”

PYMNTS reported in March that traditional financial instruments like treasuries, private credit, commoditiesand money market funds are gradually appearing as instruments on public blockchains. Proponents make them out to be programmable financial instruments that settle instantly, trade globally and integrate directly with digital capital markets, per the report.