[DigitalToday reporter Yoonseo Lee] Ripple, JPMorgan, Mastercard and Ondo Finance have completed a pilot transaction connecting the XRP Ledger (XRPL) with existing bank payment infrastructure.

On May 7 (local time), blockchain media outlet The Crypto Basic presented the transaction as a case showing tokenised financial assets can be settled using both blockchain and traditional financial networks.

The key was handling the redemption of tokenised U.S. Treasury assets and U.S. dollar settlement seamlessly across different infrastructure. Ondo Finance said it worked with Ripple, Mastercard and JPMorgan’s Kinexys platform to complete the transaction in a three-step process.

First, Ondo Finance processed Ripple’s redemption for OUSG on the XRPL. Mastercard’s Multi-Token Network then sent payment instructions to JPMorgan Kinexys. Finally, Kinexys transferred U.S. dollar funds through the existing banking system to Ripple’s Singapore-based bank account.

Ondo Finance assessed the pilot as a breakthrough for settlement of tokenised U.S. Treasuries. The company explained it was the first case to show tokenised Treasury assets can be settled across borders in near real time and processed outside traditional bank business hours.

Ripple said the result was meaningful progress toward a "24/7 global financial market". It also stressed that combining the XRPL with global banking infrastructure shows the possibility that institutions could process cross-border transactions in a single workflow over the long term.

The structure has the blockchain handling the asset redemption step, while fiat currency settlement is handled by the existing payment network. This reaffirmed Ripple’s existing direction that blockchain-based settlement efficiency can be improved without fully replacing the banking system. In practice, the XRPL was used as the blockchain layer for tokenised asset redemption, while the dollar transfer took place through traditional financial infrastructure.

The market viewed the pilot transaction as an example showing the potential for institutional use of the XRPL. Vet, an XRPL dUNL validator, said the participation itself by Ondo Finance, Mastercard and JPMorgan shows major financial institutions see practical value in using the XRPL for cross-border payments and banking infrastructure.

Vet also dismissed concerns about XRP raised after recent remarks by former Ripple chief technology officer (CTO) David Schwartz (데이비드 슈워츠). After Schwartz said he sold most of the XRP he held, some investors questioned whether he had lost confidence in XRP. Vet, however, argued the pilot shows why institutions are likely to continue engaging with the XRP ecosystem. He said major financial firms will keep adopting technology that solves real-world transaction and payment problems, and narrative-driven and speculative controversies will eventually fade.

The transaction is also meaningful in showing that crypto infrastructure and traditional financial infrastructure are focusing on connection rather than competition. In particular, it showed the direction for future institutional tokenised-asset settlement models, as tokenised asset redemption, payment instruction delivery and dollar remittances were kept separate but linked in a single process. It is expected to be a point of interest whether such a structure can expand into actual commercial payment flows, and how much the XRPL can broaden its role in cross-institution cross-border settlement.

Ondo, Kinexys by @jpmorgan, @Mastercard, & @Ripple successfully completed a landmark pilot transaction connecting the XRP ledger with interbank settlement rails. This milestone marks the first time tokenized U.S. Treasuries have settled across borders and banks in near real time… pic.twitter.com/BUjvWwHBGg