Ondo Finance achieved a landmark pilot on May 6th, successfully completing the first near-real-time, cross-border redemption of a tokenized U.S. Treasury fund. This foundational step, in collaboration with J.P. Morgan, Mastercard, and Ripple, bridged public blockchains with traditional banking for instant fiat settlement.

Key Highlights:

• Ondo Finance completed the first near-real-time, cross-border redemption of a tokenized U.S. Treasury fund with J.P. Morgan, Mastercard, and Ripple.

• Coinbase selected Centrifuge as its preferred tokenization partner for the Base ecosystem, making a seven-figure strategic investment.

• Ondo Finance expanded its tokenized offerings by bringing the preferred stock of Strategy (STRC) onto Ethereum, BNB Chain, and Solana.

• BlackRock opposed the U.S. OCC's proposed 20 percent cap on tokenized assets in stablecoin reserves, citing potential constraints on its $2.6 billion BUIDL fund.

Topics: Ondo Finance, J.P. Morgan, Mastercard, Ripple, tokenized U.S. Treasuries, Centrifuge, Coinbase, Base ecosystem, real-world assets, tokenization, stablecoins, BlackRock

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TRANSCRIPT

Ondo Finance has successfully bridged the gap between public blockchains and the global banking system in a landmark pilot.

In what could be a foundational step toward 24/7 global financial markets, Ondo Finance announced on May 6th the successful completion of the first near-real-time, cross-border redemption of a tokenized U.S. Treasury fund. The pilot program was conducted in collaboration with J.P. Morgan's Kinexys platform, Mastercard, and Ripple. The transaction involved Ripple redeeming a portion of its holdings in Ondo's Short-Term U.S. Government Treasuries, which are tokenized on the XRP Ledger. The on-chain asset redemption then triggered a fiat settlement through Mastercard's Multi-Token Network, with J.P. Morgan's infrastructure initiating the final payment to Ripple's bank account in Singapore. This test is significant because it connects public blockchain infrastructure with traditional interbank settlement rails, demonstrating a framework for tokenized asset redemptions to occur almost instantly, outside of conventional banking hours and without relying on delayed wire transfers.

In a significant move for on-chain infrastructure, Coinbase has selected Centrifuge as its preferred tokenization partner for the Base ecosystem. The announcement on May 5th included a seven-figure strategic investment from Coinbase into Centrifuge. The partnership will focus on bringing traditional financial assets such as exchange-traded funds, credit, and other structured products onto the Base blockchain. This deepens an existing relationship, which previously saw the launch of a compliant, tokenized S&P 500 fund on Base. The deal positions Centrifuge as the core infrastructure for future real-world asset issuance within the Coinbase ecosystem.

The expansion of tokenized products also continued this week, as Ondo Finance announced on May 4th it had tokenized the preferred stock of Strategy, which trades on Nasdaq under the ticker STRC. The token is being made available on the Ethereum, BNB Chain, and Solana blockchains through the Ondo Global Markets platform. The underlying asset is a perpetual preferred stock that pays monthly dividends and currently offers a yield of 11.5 percent annually, though the return for token holders is expected to be lower after accounting for U.S. withholding tax. This move represents a further step in bringing varied real-world assets on-chain, positioning preferred stocks as an instrument between lower-yield bonds and more volatile equities.

On the regulatory front, BlackRock is pushing back against a proposed rule from the U.S. Office of the Comptroller of the Currency. The world's largest asset manager filed a formal comment letter opposing a proposed 20 percent cap on tokenized assets being held in the reserves of stablecoin issuers. BlackRock argued the limit is unnecessary and that the risk of an asset is based on its credit quality and liquidity, not whether it is transferred on a blockchain. The firm noted the cap would constrain the growth of its nearly $2.6 billion BUIDL fund, which is used as a reserve asset for several stablecoins.

That's your Crypto RWA Brief for May 08, 2026. We'll see you next episode.