Ondo Finance

Ondo Finance Acquires Oasis Pro: Supercharging Its XRPL Partnership

Ondo Finance acquires SEC-regulated Oasis Pro, expanding its partnership with Ripple to bring tokenized stocks, bonds, and ETFs to XRP Ledger. Building on OUSG's $690M success, this move positions the Ondo-Ripple alliance to dominate the $18 trillion tokenization market.

The Ripple Effect

06 Oct 2025 — 9 min read

Strategic Move Strengthens Ondo-Ripple Collaboration in $18 Trillion Tokenization Race

In a strategic acquisition that deepens its partnership with Ripple, Ondo Finance announced on July 4, 2025, that it is acquiring Oasis Pro, an SEC-registered broker-dealer, Alternative Trading System (ATS), and Transfer Agent. This move grants Ondo the comprehensive regulatory infrastructure needed to expand its tokenized securities ecosystem on the XRP Ledger (XRPL), positioning the Ondo-Ripple partnership to dominate a market projected to exceed $18 trillion by 2033.

The acquisition comes just one month after Ondo successfully launched its tokenized U.S. Treasury product (OUSG) on XRPL in June 2025, which has already grown to over $690 million in total value locked. Industry observers are calling this acquisition "quite possibly the only power move that has matched Ripple for all of crypto," highlighting how Ondo and Ripple are building complementary infrastructure to lead the institutional tokenization revolution.

Building on a Proven Partnership

Ondo Finance and Ripple began their strategic collaboration in January 2025 when they announced plans to bring Ondo Short-Term US Government Treasuries (OUSG) to the XRP Ledger. The partnership went live in June 2025 and has already demonstrated the power of combining Ondo's institutional-grade tokenized products with XRPL's high-performance blockchain infrastructure.

Key elements of the existing partnership include:

OUSG on XRPL: Ondo's tokenized fund backed by short-term U.S. Treasuries is now available to qualified institutional investors on XRPL, combining security, regulatory compliance (KYC/AML standards), and yield
RLUSD Integration: Ripple's RLUSD stablecoin enables seamless, 24/7 minting and redemption of OUSG tokens, providing instant liquidity without traditional banking hours
Joint Investment: Both companies committed seed investments to bootstrap liquidity, demonstrating deep partnership rather than a simple vendor relationship
Proven Success: OUSG has grown from $185 million at launch to over $690 million in TVL, validating XRPL as a competitive platform for institutional real-world asset (RWA) tokenization

This existing collaboration provides critical context for understanding the Oasis Pro acquisition—Ondo isn't pivoting away from XRPL, it's doubling down by acquiring the licenses to bring even more institutional products to the network.

The Oasis Pro Acquisition: Expanding the Product Suite

The acquisition, pending regulatory approval, brings Ondo Finance immediate access to three critical U.S. financial licenses through Oasis Pro Markets LLC, a FINRA member since 2020. These licenses include an SEC-registered broker-dealer, an Alternative Trading System for multi-asset trading, and Transfer Agent registration—collectively representing the most comprehensive digital asset licensing package currently available in the United States.

"This unlocks the next major chapter of tokenized finance," said Nathan Allman, CEO of Ondo Finance. "This acquisition will empower us to realize our vision of building a robust and accessible tokenized financial system, backed by the strongest regulatory foundations."

Founded in 2019, Oasis Pro was among the first U.S.-regulated ATSs authorized to support digital securities settlement using both fiat currencies and stablecoins like USDC and DAI. The platform has contributed to shaping regulatory policy through participation in FINRA's Crypto Working Group, bringing deep regulatory expertise to Ondo's operations.

Pat LaVecchia, CEO of Oasis Pro, will join Ondo Finance's team following the acquisition. "This acquisition combines our brokerage platform and licenses with Ondo's existing institutional-grade infrastructure and products, a comprehensive foundation for a regulated tokenized securities ecosystem," LaVecchia stated.

What this means for XRPL: With these new licenses, Ondo can now develop and launch tokenized stocks, corporate bonds, ETFs, and other securities on XRPL with full SEC compliance. Previously limited to Treasury products for accredited investors, Ondo can now offer a comprehensive suite of tokenized securities to both institutional and retail U.S. investors—all settling on XRPL infrastructure.

Ondo + Ripple: A Powerful Division of Labor

Rather than competing, Ondo and Ripple have established a strategic division of labor that leverages each company's core strengths:

Ondo's Role in the Partnership:

Regulatory Compliance: SEC and FINRA licenses through Oasis Pro ensure all products meet U.S. securities regulations
Product Development: Creating institutional-grade tokenized products (Treasuries, stocks, bonds, ETFs)
Institutional Relationships: Building trust with traditional finance players, asset managers, and corporate treasurers
Custody and Operations: Managing the broker-dealer operations, transfer agent services, and investor onboarding

Ripple's Role in the Partnership:

Blockchain Infrastructure: XRPL provides 3-5 second settlement times at fractions of a cent per transaction
RLUSD Stablecoin: Enables instant, 24/7 minting and redemption of tokenized assets
Native DEX and AMM: Built-in trading infrastructure eliminates need for external protocols
Global Network: Ripple's established relationships with financial institutions worldwide facilitate international adoption
Cross-Border Capabilities: XRP's proven payment rails enable seamless international transactions

This complementary structure means that as Ondo grows, XRPL grows—and vice versa. The companies aren't fighting over the same territory; they're building different layers of the same stack.

The $18 Trillion Opportunity

The tokenized securities market is experiencing explosive growth that benefits both partners. According to a joint report by Ripple and Boston Consulting Group, the tokenized real-world assets market is projected to surge from approximately $600 billion in 2025 to $18.9 trillion by 2033, representing a compound annual growth rate (CAGR) of 53%.

Tokenized stocks—digital assets backed 1:1 by publicly traded shares and settled on blockchain rails—represent a significant portion of this projected growth. With Oasis Pro's licenses, Ondo can now capture this market opportunity while utilizing XRPL as its settlement infrastructure.

The real competition isn't Ondo versus Ripple—it's the Ondo-Ripple partnership versus traditional finance and competing blockchain platforms. Consider the competitive landscape:

Traditional Finance Competitors:

BlackRock's BUIDL tokenized money market fund (primarily on Ethereum)
Franklin Templeton's tokenized funds
JPMorgan's Kinexys platform ($1.5 trillion in tokenized transactions)
Goldman Sachs' digital asset initiatives

Blockchain Platform Competitors:

Ethereum (currently dominant for tokenized assets)
Solana (fast but less institutional adoption)
Private/Permissioned blockchains (limited composability)

The Ondo-Ripple partnership combines best-in-class regulatory compliance with superior blockchain infrastructure, positioning them to capture significant market share from both traditional finance incumbents and competing blockchain platforms.

Why This Matters for XRP and the XRPL Ecosystem

For XRP holders and the Ripple ecosystem, the Ondo acquisition represents a major validation and growth catalyst. Here's why this partnership deepening is bullish for XRPL:

Institutional Product Pipeline: Oasis Pro's licenses enable Ondo to launch multiple new product categories on XRPL:

Tokenized U.S. stocks (Apple, Microsoft, Tesla, etc.)
Corporate bonds and investment-grade debt
ETF tokens providing diversified exposure
Private credit and structured products
Real estate investment tokens

Each new product brings institutional capital, trading volume, and credibility to XRPL. As Robinhood CEO Vlad Tenev stated, "Tokenization is like a freight train. It can't be stopped, and eventually it's going to eat the entire financial system."

XRP as Bridge Currency: XRPL's native decentralized exchange uses XRP as a bridge asset for trading between different tokenized securities. As more assets launch on XRPL, XRP's utility as a settlement and bridge currency increases proportionally. Converting between tokenized Tesla stock and tokenized corporate bonds could flow through XRP pools, creating organic demand.

Network Effects and Liquidity: Ondo's $690 million OUSG TVL already on XRPL represents just the beginning. As Ondo adds stocks, bonds, and other securities, the total value locked on XRPL could reach tens of billions of dollars. This liquidity attracts more institutional players, creating a virtuous cycle of adoption.

Regulatory Validation: Ondo choosing XRPL as its primary settlement layer—even with alternative options available—sends a powerful signal to other institutional players. It validates that XRPL meets enterprise requirements for security, scalability, regulatory compliance, and operational reliability.

XRP Price Implications: The growth of tokenized assets on XRPL could have significant implications for XRP's valuation. According to analysis by The Crypto Basic, if XRPL captured just 5% of the broader RWA tokenization market, XRP could trade between $1.81 and $5.42. At 20% market share, prices could reach $7.23 to $21.67, while 35% market capture could push XRP to $12.64 to $37.95.

While these projections involve speculation, the directional logic is sound: more institutional assets on XRPL → more XRP utility → higher XRP demand and price potential.

Competitive Positioning Against Ethereum: The Ondo partnership helps XRPL compete directly with Ethereum for institutional tokenization. While Ethereum currently dominates with products like BlackRock's BUIDL, XRPL offers superior performance (3-5 second finality vs. Ethereum's 12-15 minutes), lower costs, and built-in compliance features. Ondo's success on XRPL demonstrates that institutions don't need Ethereum's complexity when XRPL provides the necessary functionality out-of-the-box.

Ripple's Broader Ecosystem Strategy: This partnership aligns with Ripple's broader vision for XRPL as the infrastructure layer for institutional finance. Other initiatives include:

Dubai's real estate tokenization project on XRPL
OpenEden's tokenized Treasury Bills on XRPL
Archax bringing hundreds of millions in tokenized assets to XRPL
The $250 million Ondo Catalyst fund with Pantera Capital investing in RWA projects

Each partnership reinforces the others, building a comprehensive ecosystem where institutional capital can flow freely between different asset classes, all settling on XRPL infrastructure.

Market Context and Competitive Dynamics

The timing of this acquisition reflects the broader institutional rush into tokenization. Several trends are converging:

Regulatory Clarity: Major jurisdictions including the EU, UAE, Switzerland, and increasingly the U.S. are establishing comprehensive legal frameworks for digital assets. Nasdaq recently requested permission from the SEC to allow listed stocks to trade in tokenized form on its exchange, with a decision expected within 90 days.

Strategic M&A: Tokenization firms are aggressively acquiring regulated entities to access U.S. markets. U.K.-based Archax acquired FINRA-regulated broker-dealer Globacap Private Markets, while Prometheum announced its own broker-dealer acquisition. The Ondo-Oasis Pro deal fits this pattern of consolidation.

Wall Street Adoption: Major financial institutions are committing serious resources:

JPMorgan's Kinexys: $1.5 trillion in tokenized transactions, $2 billion daily volume
BlackRock's BUIDL: Approaching $2 billion in assets under management
Goldman Sachs: Multiple tokenized product launches
Franklin Templeton: Active in tokenized funds

Technology Maturation: Enterprise-grade blockchain infrastructure, custody solutions, and compliance tools have evolved significantly. Platforms like XRPL now offer institutional functionality without requiring complex smart contract development.

The Ondo-Ripple partnership is positioning itself at the intersection of these trends, combining regulatory compliance, proven technology, institutional relationships, and demonstrated traction (OUSG's $690M TVL).

Challenges and Path Forward

Despite the optimistic outlook, significant challenges remain for widespread tokenization adoption:

Fragmented Infrastructure: Most tokenized assets settle in isolation with off-chain cash legs, limiting efficiency gains. Creating shared delivery-versus-payment (DvP) standards will be critical—something the Ondo-Ripple partnership addresses through RLUSD integration.

Interoperability: Cross-chain movement of tokenized assets remains difficult. While this creates a moat for XRPL-native assets, it could limit institutional adoption if firms need multi-chain exposure.

Regulatory Uncertainty: Despite progress, U.S. regulatory frameworks remain incomplete. The SEC has stated that "tokenized securities are still securities," but comprehensive tokenization regulations are still developing.

Market Education: Many institutional investors remain unfamiliar with tokenization benefits. Significant education and proof-of-concept work is needed to drive mainstream adoption.

Custody and Security: Institutional-grade custody solutions must evolve to handle tokenized securities at scale while meeting fiduciary standards.

For the Ondo-Ripple partnership specifically, success requires:

Navigating regulatory approval for the Oasis Pro acquisition
Successfully launching tokenized stock offerings without liquidity or technical issues
Scaling operations to handle billions in additional TVL
Maintaining security and compliance as product complexity increases
Competing effectively against well-capitalized incumbents like BlackRock

However, the existing OUSG success on XRPL provides confidence that the partnership can execute on this expanded vision.

Key Takeaways

The Ondo Finance acquisition of Oasis Pro represents a strategic deepening of the Ondo-Ripple partnership, not a competitive pivot. By securing comprehensive U.S. licensing, Ondo can now bring a full suite of tokenized securities—stocks, bonds, ETFs, and more—to the XRP Ledger with complete regulatory compliance.

For Ondo investors and followers:

Oasis Pro acquisition enables product expansion beyond Treasuries
XRPL provides proven, enterprise-grade settlement infrastructure
Partnership with Ripple accelerates go-to-market and institutional adoption
Position strengthens as regulatory compliance becomes competitive advantage

For XRP holders and the Ripple ecosystem:

More institutional products on XRPL → increased network value and XRP utility
Ondo's success validates XRPL for institutional tokenization
Partnership positions XRPL to compete directly with Ethereum
Potential for billions in additional TVL as new products launch
XRP benefits from increased bridge currency usage as asset diversity grows

For the broader market:

Ondo-Ripple partnership demonstrates viable alternative to Ethereum-based tokenization
Regulatory compliance and technology performance can coexist
Traditional finance and DeFi are converging faster than many expected
The $18 trillion tokenization market is not theoretical—it's being built today

The tokenization revolution is accelerating, and the Ondo-Ripple partnership is positioning itself as a cornerstone of this transformation. By combining Ondo's regulatory infrastructure with XRPL's technical capabilities, they're building the rails for institutional capital to flow into blockchain-based securities at scale. As Chad Steingraber noted, this is "quite possibly the only power move that has matched Ripple for all of crypto"—not because they're competing, but because they're building complementary pieces of the same transformative vision.

Sources

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