Real-World Asset Platform Ondo Finance Expands Tokenized Treasurys to Polygon
Ondo’s OUSG token, one of the largest on-chain tokenized Treasury products, has accrued $134 million of assets under management on Ethereum.
Tokenized real-world asset (RWA) platform Ondo Finance is expanding beyond the mainnet to the network, the company said Thursday.
The platform has issued its token, a tokenized version of BlackRock’s short-term U.S. government bond exchange-traded fund, natively on Polygon as part of a “strategic alliance,” according to a press release.
The firm also plans to bring its upcoming , which is a tokenized money market fund called OMMF, as well as the Ondo-developed decentralized lending marketplace – pending governance approval – to Polygon, Justin Schmidt, president and chief operating officer of Ondo, said in an interview.
The development comes as demand for tokenized versions of traditional financial instruments such as U.S. Treasurys is growing among investors, as bond yields have surpassed rates in decentralized finance () lending markets. Wealth management firm Bernstein that tokenization of RWAs could grow to $5 trillion in market value in the next five years.
Tokenized Treasurys has grown to a , with Ondo Finance’s OUSG token claiming a significant share of $134 million since its inception in January. Flux Finance, developed by Ondo’s team and governed by a decentralized autonomous organization () through community votes, lets investors take out loans by pledging OUSG as collateral. It has $44 million of total value locked on the platform, according to .
Ondo’s move follows asset management giant Franklin Templeton, which made its tokenized Franklin OnChain U.S. Government Money Fund () after releasing it on Stellar in 2021.
Polygon is a layer 2 scaling network of Ethereum that allows users to transact more cheaply and faster than on the mainnet, which is prone to clogging during times of high blockchain activity, while still relying on Ethereum’s security.
“Ondo Finance building on Polygon is a crucial step toward bridging the gap between DeFi and institutional-grade finance,” said Colin Butler, global head of institutional capital at Polygon Labs.
Edited by Nelson Wang.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Nasdaq’s Move Toward Tokens Challenges the SEC’s Regulatory Stance
- Nasdaq submitted a proposal to tokenize stocks via digital tokens, aiming to streamline settlement and expand market access while navigating SEC regulatory scrutiny. - The World Federation of Exchanges warned tokenized equities could bypass safeguards, urging the SEC to enforce parity with traditional trading rules to protect market integrity. - Industry reactions are split: proponents highlight democratization and liquidity gains, while critics caution layer-2 tokenization risks diverting value from cor
Vitalik Buterin Supports ZKSync: Evaluating the Long-Term Investment Potential and Future Prospects of Ethereum Layer 2 Solutions
- Vitalik Buterin's endorsement of ZKSync's Atlas upgrade validates its 15,000 TPS scalability, signaling a shift in Ethereum's scaling priorities. - ZKSync's ZK Stack framework enhances cross-chain efficiency, attracting $15B in 2025 and a 50% ZK token surge post-endorsement. - ZKSync competes with Arbitrum ($16.63B TVL) and Optimism ($6B TVL) via cost efficiency and EVM compatibility, aiming to capture institutional capital. - Ethereum's post-Merge roadmap, including Proto-Danksharding, aligns with ZKSyn
Nasdaq's initiative to introduce tokenized stocks encounters regulatory resistance from the WFE
- Nasdaq submitted a tokenized stock proposal to the SEC, seeking regulatory approval while collaborating with agencies to ensure compliance. - The WFE warned that tokenized assets could weaken investor protections and create regulatory imbalances by bypassing traditional market rules. - Nasdaq partnered with Revolut to strengthen regtech capabilities, emphasizing innovation balanced with compliance frameworks during SEC review. - The SEC's "Innovation Exemption" framework aims to accelerate blockchain ado
The Xerox Campus located in Webster, NY: An Example of How Infrastructure Enhances Real Estate Value
- Webster , NY transformed the Xerox brownfield into a high-value industrial hub via infrastructure grants and public-private partnerships. - $9.8M FAST NY funding enabled shovel-ready upgrades, attracting advanced manufacturing and logistics firms to the 300-acre site. - Strategic anchors like the $650M fairlife dairy facility and NY Forward programs validate the model, boosting property values by 10.1% annually. - The success demonstrates how infrastructure-led redevelopment in post-industrial markets ca
Trending news
MoreCrypto prices
More
