Ripple Confirms ONDO’s OUSG Fund, Backed by BlackRock’s BUIDL, Is Live on XRP Ledger

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The XRP Ledger (XRPL) is rapidly emerging as a leading blockchain platform for real-world asset (RWA) tokenization, and the latest milestone confirms its growing influence in institutional finance. ONDO Finance has officially launched its tokenized U.S. Treasuries fund—OUSG—on the XRPL, backed by BlackRock’s BUIDL fund. This integration marks a pivotal moment in bridging traditional financial instruments with decentralized infrastructure, offering institutional investors seamless, 24/7 access to high-quality digital assets.

With this development, the XRPL strengthens its position as a preferred network for regulated, yield-generating tokenized assets. Investors can now leverage RLUSD, a regulated stablecoin on the XRP Ledger, to mint and redeem OUSG tokens—representing fractional ownership in U.S. Treasury securities—directly on-chain.

ONDO Finance Expands RWA Access via XRP Ledger Integration

ONDO Finance, a pioneer in blockchain-based asset management, has extended its footprint into the XRP ecosystem by deploying its OUSG fund on XRPL. The OUSG token represents ownership in a fund composed of short-term U.S. Treasury bonds, providing investors with a secure, low-volatility yield vehicle. What makes this deployment significant is that each OUSG token is fully backed by BlackRock’s BUIDL token, itself a tokenized version of U.S. Treasuries managed by one of the world’s largest asset managers.

👉 Discover how tokenized treasuries are reshaping institutional investing on blockchain networks.

This layered backing structure—BUIDL securing OUSG on XRPL—creates a trust-minimized bridge between Wall Street and Web3. It ensures compliance, transparency, and auditability while enabling faster settlement and continuous market access compared to traditional markets.

Ripple confirmed the integration through an official post on X (formerly Twitter), emphasizing that OUSG is now live and mintable using RLUSD. This collaboration follows Ripple’s earlier partnership with Guggenheim, further cementing the XRPL’s reputation as a go-to platform for regulated institutions exploring blockchain-based asset issuance.

Why the XRP Ledger Is Becoming a Hub for Tokenized Assets

The XRP Ledger wasn’t originally designed for smart contracts or complex DeFi applications like some newer blockchains. However, its unique combination of speed, low cost, regulatory clarity, and energy efficiency has made it an ideal candidate for RWA tokenization.

Key advantages driving adoption include:

These features align perfectly with the needs of institutional investors who prioritize security, scalability, and legal compliance over speculative DeFi yields.

Moreover, the integration of RLUSD—a U.S.-regulated stablecoin issued by Ripple—adds another layer of legitimacy. Unlike algorithmic or unregulated stablecoins, RLUSD operates under strict financial oversight, making it suitable for accredited investors and institutional use cases.

How OUSG Works on the XRPL: A Step-by-Step Overview

Investors interested in gaining exposure to U.S. Treasuries via OUSG on the XRP Ledger can do so through a streamlined process:

  1. Acquire RLUSD: Purchase or transfer RLUSD to a compatible XRPL wallet.
  2. Mint OUSG Tokens: Use RLUSD as collateral to mint OUSG through ONDO’s on-chain portal.
  3. Hold or Trade: Retain OUSG for passive yield or trade it across supported decentralized exchanges.
  4. Redeem at Any Time: Burn OUSG tokens to receive RLUSD back, reflecting principal plus accrued interest.

This mechanism allows for continuous liquidity and eliminates the need for traditional brokerage accounts or custodians. All transactions are recorded immutably on the XRPL, ensuring transparency and reducing counterparty risk.

Importantly, OUSG accrues yield daily based on the performance of the underlying BUIDL fund. Returns are automatically reflected in the token’s value, enabling compounding without manual reinvestment.

👉 Learn how blockchain platforms are enabling 24/7 access to traditional financial assets.

FAQ: Understanding OUSG and Its Role on the XRP Ledger

Q: What is OUSG?
A: OUSG is a tokenized U.S. Treasury fund issued by ONDO Finance. Each token represents fractional ownership in short-term U.S. government bonds and generates daily yield.

Q: Is OUSG safe?
A: Yes. OUSG is backed by BlackRock’s BUIDL fund, which holds actual U.S. Treasuries. It operates under regulatory oversight and undergoes regular audits for transparency.

Q: Who can invest in OUSG on XRPL?
A: Currently, access is primarily available to institutional and accredited investors due to compliance requirements. Retail access may expand as regulatory frameworks evolve.

Q: How does RLUSD relate to OUSG?
A: RLUSD is the on-ramp currency used to mint OUSG tokens. As a regulated stablecoin pegged 1:1 to the U.S. dollar, it provides a compliant entry point into the ecosystem.

Q: Can I earn yield with OUSG?
A: Absolutely. Holders earn daily yield derived from the interest on underlying U.S. Treasuries held via BUIDL. Yields are automatically compounded and reflected in the token balance.

Q: Why choose XRPL over other blockchains for RWA?
A: XRPL offers faster settlement, lower costs, native compliance tools, and strong institutional partnerships—making it uniquely suited for regulated asset tokenization.

The Broader Impact: Real-World Assets Go On-Chain

The launch of OUSG on XRPL is more than just a technical achievement—it's a signal of shifting paradigms in global finance. As more institutions recognize the benefits of tokenization, including improved liquidity, fractional ownership, and automated compliance, demand for blockchain-based RWAs will continue to grow.

According to industry estimates, the tokenized asset market could reach $16 trillion by 2030. Platforms like the XRP Ledger are positioning themselves at the forefront of this transformation by offering scalable, compliant infrastructure tailored to traditional finance.

This trend also reflects growing confidence in digital securities as legitimate investment vehicles—not just speculative instruments but foundational components of diversified portfolios.

👉 Explore how blockchain technology is unlocking trillions in real-world asset value.

Final Thoughts: A New Era of Institutional On-Chain Finance

With ONDO Finance bringing its BlackRock-backed OUSG fund to the XRP Ledger, we’re witnessing a convergence of legacy finance and decentralized technology. The collaboration exemplifies how blockchain can enhance efficiency, transparency, and accessibility in capital markets without compromising regulatory standards.

As more asset managers follow suit, the line between traditional finance and crypto-native systems will blur further—ushering in a future where real-world assets flow freely across digital rails.

For investors, developers, and financial institutions alike, the message is clear: the future of finance is on-chain, and it's already here.

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