Main Points:
- Launch of OUSG on XRPL: Ondo Finance’s RWA token for U.S. Treasuries, OUSG, debuts on the XRP Ledger with $30 million TVL, expanding its multi-chain footprint.
- RWA Market Boom: Tokenized real-world assets have surged 260% year-to-date to over $23 billion, with U.S. Treasury debt comprising 34% of the market.
- EVM-Compatible Sidechain: XRPL’s forthcoming EVM sidechain in Q2 2025 will enable seamless integration of Ethereum-based DeFi and dApps, boosting institutional adoption.
- Competitive Landscape: OUSG ranks third by market cap among treasury RWA tokens, trailing BlackRock’s BUIDL and Franklin Templeton’s BENJI.
- Institutional Grade Compliance: Through Ripple’s RLUSD stablecoin, qualified investors can mint and redeem OUSG 24/7 while maintaining regulatory adherence and operational efficiency.
- Future Outlook: The convergence of liquidity, compliance features, and cross-chain interoperability positions XRPL as a leading on-chain finance platform for institutional RWAs.
1. Launch of OUSG on XRPL: Expanding Multi-Chain Reach
On June 11, 2025, Ripple announced that Ondo Finance’s tokenized U.S. Treasury product, OUSG, is now live on the XRP Ledger (XRPL). Previously available on Ethereum, Polygon, and Solana, the addition of XRPL marks OUSG’s fourth blockchain deployment and underscores the growing appetite for institutional-grade, blockchain-based financial instruments. At launch, OUSG secured approximately $30 million in total value locked (TVL) on XRPL, contributing to Ondo Finance’s broader $1.3 billion TVL across its tokenized finance suite.
This expansion is not merely a new listing; it represents a significant milestone in the maturation of on-chain finance. By integrating OUSG with XRPL, institutions gain round-the-clock access to tokenized short-term U.S. Treasuries, settled in real time and without the constraints of traditional banking hours. Ripple positions this development as proof that tokenized finance has transcended theoretical constructs to become a practical solution in active markets.
2. RWA Market Boom: Tokenized Assets Surge 260%
The RWA sector has experienced explosive growth in 2025, with total valuations leaping from $8.6 billion at the start of the year to over $23 billion as of early June—a 260% increase. This remarkable surge is driven primarily by tokenized private credit (58% of the market) and U.S. Treasury debt (34%), highlighting strong institutional demand for both yields and balance-sheet diversification.
Within the treasury segment, OUSG ranks third by market cap, following BlackRock’s BUIDL and Franklin Templeton’s BENJI. As of publication, OUSG’s annual yield stood at approximately 4.09%, positioning it as a competitive short-duration asset for eligible investors. The growth trajectory of the RWA market underscores the shift toward tokenization as a means to enhance liquidity, transparency, and global accessibility of traditionally siloed financial instruments.
3. Technological Significance: XRPL’s EVM-Compatible Sidechain
A complementary development bolstering XRPL’s appeal is its upcoming EVM-compatible sidechain, slated for launch in Q2 2025. Announced at APEX 2025, this sidechain will enable support for Ethereum-style smart contracts and dApps directly atop the XRP Ledger, marrying XRPL’s speed and low transaction costs with Ethereum’s mature DeFi ecosystem.
Early results from the testnet reveal rapid network growth, with developer activity and contract deployments accelerating in the weeks leading up to the mainnet launch. Once live, institutional participants will be able to leverage XRPL’s native compliance features—such as issuer whitelisting and on-chain escrow—while accessing a broad array of EVM dApps. This interoperability is poised to unlock new use cases for RWAs, including automated investment strategies, on-chain collateralization, and programmable corporate debt instruments.
4. Competitive Landscape: Market Position of OUSG
Within the tokenized treasury space, OUSG’s entry onto XRPL intensifies competition among major asset managers and FinTech firms. BlackRock’s BUIDL and Franklin Templeton’s BENJI lead the sector by market capitalization, reflecting their established brand recognition and extensive distribution networks. However, Ondo Finance has distinguished itself through rapid multi-chain deployments and partnerships that emphasize institutional security and regulatory compliance.
The broader stablecoin market, currently dominated by Tether and Circle, underscores the strategic importance of asset-backed digital tokens. These issuers hold over $166 billion in U.S. Treasuries, and legislative developments in the United States may further cement stablecoin demand for government debt instruments. As regulatory frameworks evolve, RWA token issuers that combine robust auditing, transparent reserves, and advanced compliance mechanisms will likely capture larger market share.
5. Institutional Grade Compliance and Efficiency
Ripple highlights that OUSG on XRPL offers institutions direct, permissioned access to high-quality assets like U.S. Treasuries while ensuring adherence to relevant regulations. Through RLUSD, Ripple’s compliant stablecoin, qualified investors can mint and redeem OUSG tokens against U.S. Treasury holdings 24/7, circumventing traditional settlement delays and central-banked operating hours.
Marcus Infanger, Senior Vice President at RippleX, emphasized that institutional RWA access on a public blockchain represents a major advance in bringing trusted financial assets to always-open markets. He noted the benefits of improved liquidity, operational efficiency, and accelerated access to capital as key drivers behind institutional interest. Furthermore, the upcoming EVM sidechain will bolster these capabilities by facilitating automated compliance checks and smart-contract-driven asset management workflows.
6. Future Outlook: The Next Phase of On-Chain Finance
Looking ahead, the convergence of tokenized RWAs, interoperable blockchains, and enhanced compliance tools positions XRPL to lead the next phase of institutional DeFi. As Congress moves toward a stablecoin regulatory framework that mandates liquid-asset backing (including U.S. Treasuries), demand for tokenized treasury products is expected to intensify, potentially driving new inflows into OUSG and its peers.
Analysts forecast stablecoin circulation could swell to $2 trillion by 2028, with a significant portion allocated to tokenized government debt. Meanwhile, the maturation of XRPL’s EVM sidechain will attract Ethereum-native developers and institutional players seeking low-cost, high-throughput infrastructure. This synergy of liquidity, compliance, and programmability will enable sophisticated on-chain financial instruments—ranging from tokenized bonds with dynamic coupons to self-executing credit lines—thereby redefining capital markets.
Conclusion
The launch of Ondo Finance’s OUSG token on the XRP Ledger marks a pivotal moment for tokenized real-world assets. By expanding into XRPL, OUSG gains access to a high-performance blockchain with built-in compliance features, while institutional investors benefit from 24/7 minting, real-time settlement, and enhanced transparency. Against the backdrop of a 260% growth in the RWA market and impending stablecoin regulations, OUSG’s arrival on XRPL underscores a broader shift toward on-chain finance as a core component of global capital markets. As XRPL’s EVM-compatible sidechain goes live, the ecosystem is primed to realize its vision of seamless, regulatory-compliant, and programmable finance—unlocking new opportunities for both issuers and investors alike.
