Can tokenized Treasuries and funds be turned into cash or credit?

The full answer

How does a tokenized Treasury become cash on the XRP Ledger today?

The route in use is redemption. A Yahoo Finance article of June 10, 2026 reported that Ondo Finance runs OUSG, its Treasury fund backed by BlackRock’s BUIDL fund, on the XRP Ledger with 24/7 minting and redemption, and that OUSG mints and redeems in Ripple’s RLUSD stablecoin [3].

The same article reported that in May, JPMorgan’s Kinexys, Mastercard, Ripple and Ondo ran the first cross-border, cross-bank redemption of a tokenized Treasury fund on the XRP Ledger, settling in under five seconds, a trade that normally takes one to three business days [3]. In that pilot, RLUSD did the bridging, the banks handled the cash leg and XRP covered the network fee [3]. The pilot itself is covered in the JPMorgan, Mastercard and Ondo redemption.

The article put tokenized Treasuries on the ledger at $418.5 million by April 21, 2026, citing an Evernorth dataset, and said the total had eased back since [3]. The wider count is on the page asking whether tokenized US Treasuries are live on the XRP Ledger.

Redemption returns cash by giving up the fund position. It is not credit, because nothing is borrowed and the holder no longer owns the fund.

What has been proposed for borrowing against a tokenized fund?

On September 18, 2025, DBS, Franklin Templeton and Ripple signed a memorandum of understanding to launch trading and lending solutions built on tokenised money market funds and stablecoins, according to Ripple’s release [1]. The release said Franklin Templeton will tokenise sgBENJI on the XRP Ledger, and DBS Digital Exchange will list sgBENJI alongside RLUSD so that eligible DBS clients can trade RLUSD for sgBENJI tokens [1]. Ledger Insights described the sgBENJI issuance as being on the XRP Ledger the same day [2].

The credit step is described as a next phase. The release said that in the next phase of the partnership, DBS will explore helping clients unlock liquidity by using their sgBENJI tokens as collateral. It said this would give third-party lenders comfort that the pledged collateral is held with a trusted bank [1]. Ledger Insights, which described DBS as Singapore’s largest bank, reported that DBS plans to use sgBENJI as collateral, which might involve repo where users borrow cash from the bank [2].

The progress of that plan is followed on what DBS and Franklin Templeton are doing with RLUSD. The general pattern of announcements and delivery is tracked in whether XRPL institutional announcements are becoming live products.

Has any repo or loan against tokenized Treasuries actually settled on XRPL?

No public source reports one. The sources checked were the DBS, Franklin Templeton and Ripple release, Ledger Insights, Yahoo Finance, crypto.news, ICOBench and Bitcoin.com News.

The on-ledger lending tool was not live in June. Yahoo Finance reported on June 10, 2026 that the most direct connection being built is the XRP Ledger’s native lending protocol, the XLS-66 amendment paired with XLS-65 Single Asset Vaults [3]. It reported that the protocol entered validator voting in January but was still in testing while Ripple’s developers ran formal verification, and was not live [3]. On July 2, 2026, crypto.news posted that Ripple had unveiled an XRPL onchain lending protocol with off-chain credit decisions and onchain enforcement [4]. The sources give no activation date after that.

The bigger aim Ripple describes, moving collateral between venues, is covered in what collateral mobility is and why Ripple invested in ZILO and Licuido. Volumes on other networks are compared in how big tokenized repo is on other platforms.

Who lends the RLUSD, and at what rate?

For sgBENJI, the named lenders are DBS itself through repo, or third-party platforms with DBS holding the collateral [1]. Ledger Insights described borrowing cash from the bank [2]. Neither the DBS release nor Ledger Insights names RLUSD as the loan currency or publishes a rate [1][2].

Ripple Prime is a second possible lender. ICOBench reported in May 2026 that Ripple Prime reportedly accepts XRP alongside US Treasuries, fiat, gold, Bitcoin and BlackRock money market funds as eligible collateral [5]. It reported that a $200 million revolving facility with Neuberger Specialty Finance provides the balance sheet capacity to fund client positions backed by that collateral pool [5]. ICOBench also said it could not confirm whether the Neuberger facility had been drawn in material size [5]. More detail is on whether Ripple Prime accepts XRP as collateral.

Conventional repo gives a reference for price, not a tokenized example. Bitcoin.com News reported on September 9, 2026, from the Schwab Prime Advantage Money Fund’s monthly filing for the period ended August 31, 2026, that the fund lends cash on a short-term basis and that the broker-dealer borrowing that cash posts a basket of securities as security against the loan [6]. JP Morgan Securities was the counterparty on four of those repos at 3.85% and 4.13%, and BofA Securities on a $919.5 million agreement at 4.15% [6]. All five were non-cleared [6]. These baskets held XRP ETF shares, not tokenized Treasuries, as explained in whether XRP ETF shares are being used as repo collateral.

Corporates may sit on the lending side instead. Ripple said on April 1, 2026 that Ripple Treasury’s digital asset framework will soon expand to products enabling 24/7 yield on idle cash through overnight repo [8]. That plan is covered in whether companies can get repo financing through Ripple Treasury.

What haircut would apply to a tokenized money-market fund?

ICOBench wrote in May 2026 that in prime brokerage, collateral eligibility requires custody agreements, defined haircuts, real-time valuation oracles, liquidation procedures and risk committee approval at every counterparty in the chain [5]. Bitcoin.com News wrote on September 9, 2026 that collateral acceptance means a risk desk ran the haircut math [6].

A loan of $950 million against $1 billion of tokenized Treasuries would imply a 5% haircut. That figure is arithmetic for illustration, not a term any lender has published. Haircuts on XRP itself are discussed in how much can be borrowed against XRP.

Does XRP have to be the collateral or carry the liquidity?

The reported deals do not use XRP for either job. Yahoo Finance reported on June 10, 2026 that buying a tokenized Treasury on XRPL does not require buying XRP, and that in the JPMorgan pilot XRP covered only the network fee [3]. crypto.news reported on July 8, 2026 that inside Ripple’s own product stack the asset doing the settlement work is predominantly RLUSD, the company’s dollar stablecoin, not XRP [4].

Cash and settlement in these structures come from more than XRP. According to crypto.news, the asset doing the settlement work inside Ripple’s own product stack is predominantly RLUSD [4]. crypto.news also wrote on July 8, 2026 that the tokenized-Treasury settlement Ripple executed with JPMorgan, Mastercard and Ondo cleared in seconds on the XRPL, and the instrument that carried the money was RLUSD [4]. Yahoo Finance reported on June 10, 2026 that RLUSD did the bridging in the JPMorgan pilot while the banks handled the cash leg, and that Ondo’s OUSG mints and redeems in RLUSD [3]. XRP is one input among several, not the whole supply of liquidity.

What is the strongest case against reading this as XRP demand?

CoinDesk reported on March 13, 2026 that XRPL’s growing activity is increasingly driven by RLUSD and tokenized assets that flow through XRP as a bridge currency but do not create sustained demand for the token [7]. crypto.news argued on July 8, 2026 that Ripple Prime accepting XRP as collateral, Ripple’s stablecoin settling Ripple’s pilots and Ripple’s ledger hosting Ripple’s products make an empire that is impressive and self-referential, and that the market has learned to discount announcements in which Ripple is both counterparties [4].

The same crypto.news piece gave the reply: RLUSD adoption seeds the ledger with the institutional liquidity that XRP-based collateral and bridging would one day plug into [4]. It called that a claim about sequencing whose first half is observable and whose second half is not yet [4]. The full argument is on whether tokenization on the XRP Ledger creates any demand for XRP.