The real-world asset protocol is also introducing instant subscriptions and redemption for its OUSG tokenized fund.
Ondo Finance, a real-world asset (RWA) protocol with $220 million in total value locked (TVL), plans to reallocate the majority of assets in its tokenized U.S. Treasuries fund OUSG into BlackRock’s recently launched USD Institutional Digital Liquidity Fund (BUIDL).
Its flagship OUSG fund has $88 million in assets and provides liquid exposure to short-term U.S. Treasuries. According to the project, BlackRock’s embrace of securities tokenization validates ONDO Finance’s original concept of a tokenized US Treasury fund and reinforces the belief that the tokenization of traditional securities on public blockchains represents the next evolution in financial markets.
Asset management behemoth Blackrock launched BUIDL on Ethereum earlier in March, and it has already amassed $245 million of assets, making it the second-largest tokenized Treasury product, according to rwa.xyz.
Instant Settlement
Ondo is also launching instant subscriptions and redemptions for OUSG in response to its clients’ growing demand for faster settlement processes. Traditionally, OUSG redemptions have taken a few business days due to the settlement times of the underlying securities.
Additionally, Ondo will introduce a new rebasing version of OUSG called rOUSG, which will have a fixed $1.00 per share mint/redeem price and daily yield distributions in the form of additional rOUSG tokens.
The protocol’s ONDO token has been a major beneficiary of the ongoing tokenized RWA boom, surging more than ten-fold since launching in January.
ONDO commands a market capitalization of $1.3 billion as of March 28.
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