01.11.2023

Ondo Launches Tokenized US Treasuries and Bonds

01.11.2023
Ondo Launches Tokenized US Treasuries and Bonds

Ondo Finance announced the launch of a tokenized fund allowing stablecoin holders globally to invest in bonds and US Treasuries. The fund seeks to close the widening gap between on-chain and off-chain yields, a potentially attractive opportunity for investors holding more than $100 billion in stablecoins, which they currently receive no yield on.

Today, crypto investors have a relatively unattractive set of yield opportunities available to them. The most proven protocols like Compound and Aave yield about 1-2% per year. While newer uncollateralized lending protocols offer yields in the 7-10% APR range, these loans have been experiencing higher-than-expected default rates and are proving to be less transparent and more risky than many traditional bonds with comparable yields. Meanwhile, an inverted yield curve and the potential for the federal funds rate to exceed 5% make short-term Treasuries a particularly compelling asset.

“The crypto market is in desperate need of low-friction access to traditional capital markets. Large stablecoin holders, including start-ups and DAOs, are faced with a choice between having their purchasing power eroded away by inflation or taking too much risk with the current set of on-chain yield offerings,” says Nathan Allman, founder and CEO of Ondo Finance. “We’re delighted to bring to market high-quality, institutional-grade offerings like our tokenized US Treasuries.”

The fund will process daily subscriptions and redemptions in stablecoins as well as traditional fiat, and investors will receive tokens on the Ethereum blockchain representing their ownership. These tokens will be transferable between whitelisted investor addresses, as well as any smart contract that passes a compliance review. Ondo envisions investors using smart contracts to engage in on-chain trading and lending with the fund tokens alongside traditional cryptoassets.

The fund will have three tokenized classes, each investing in a single ETF from either Blackrock or PIMCO. Ondo will manage the fund, with Clear Street serving as the prime broker and qualified custodian of the securities, Coinbase as the qualified custodian of the stablecoins, NAV Consulting as the fund admin, and Richey May as the fund auditor.

Source: Ondo Finance

HSBC AI Markets harnesses natural language processing to meet market participants’ trading and hedging needs, from pre-trade analysis, to execution, to post-trade. Markets Media caught up with Tom Croft to learn more about the platform.

#AIMarkets

“Portfolio trading is a massive improvement in efficiency.”

What impact do you think portfolio trading will have on the future of bond market structure?

#PortfolioTrading #Trading

Asset owners are investing heavily in data, from AI to ESG to real-time tools.
What’s the top priority for the data suite? 👇

#AssetOwners #FinTech #AI #ESG #Data

At #TradeTechFX Barcelona this week, LMAX Group Managing Director of Digital Assets, Jenna Wright, joins @TheBondDESK @marketsmedia to discuss how FX desks are adapting to the rise of digital assets.

She’ll explore market convergence, regulation and the investor opportunities…

Load More

Related articles

  1. There was a 34% improvement in predicting how likely a trade would be filled at a quoted price.

  2. The new taxonomy is a game changer for clients wanting to use APIs to issue Eurobonds.

  3. Integrating corporate debt addresses growing demand for diverse, digitized assets and secondary liquidity.

  4. Trading Europe From ‘Across the Pond’

    This launch marks the first step in Euronext’s ambition to develop fixed income contracts.

  5. Emerging Market FX Trading: Liquidity Challenges

    Upon inclusion in the index, Saudi Arabia could attract $5bn in initial foreign inflows.

We're Enhancing Your Experience with Smart Technology

We've updated our Terms & Conditions and Privacy Policy to introduce AI tools that will personalize your content, improve our market analysis, and deliver more relevant insights.These changes take effect on Aug 25, 2025.
Your data remains protected—we're simply using smart technology to serve you better. [Review Full Terms] | [Review Privacy Policy] Please review our updated Terms & Conditions and Privacy Policy carefully. By continuing to use our services after Aug 25, 2025, you agree to these

Close the CTA