Ondo Finance will help customers invest in deep liquidity low-risk traditional assets through blockchain technology.
Ondo Finance, a decentralized financial platform focused on institutional investors, has launched tokenized United States treasuries and bonds for investors who collectively hold over $100 billion of non-yield-bearing stablecoins. According to the announcement, the tokenized asset will begin with short-term United States treasuries and bonds through highly liquid Exchange-Traded Funds (ETFs) managed by BlackRock Inc (NYSE: BLK) and Pacific Investment Management Company LLC (PIMCO).
Tokenized US Treasuries and Bonds by Ondo Finance
At launch, Ondo Finance will provide three separate share classes to deep-pocketed customers. Among them include US Government Bond Fund (OUSG) which will exclusively invest in short-term US treasuries through the Blackrock US Treasuries ETF (SHV). The second available share class will invest in a short-term Investment Grade Bond Fund (OSTB) through PIMCO’s Enhanced Short Maturity Active ETF (MINT).
The third share class provided by Ondo Finance dubbed High Yield Corporate Bond Fund (OHYG) will invest in high yield, corporate bonds through the Blackrock iBoxx $ High Yield Corporate Bond ETF (HYG).
As such, Ondo Finance will help customers with deep liquidity access low-risk traditional investment assets through blockchain technology. Moreover, the company has inked strategic partnerships with institutional-grade firms like Coinbase Global Inc (NASDAQ: COIN) to secure customers’ funds.
“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.”
Ondo Finance Brings Relief to Distressed Crypto Market
The cryptocurrency market has been trapped in a bear market for the past twelve months. Over $2.2 trillion has vaporized from the industry within that period, hence attracting regulatory attention worldwide. As such, crypto companies with deep liquidity have been trapped with inflationary assets at customers’ risk.
However, Ondo Finance has come to the relief of many such investors to provide a low-risk yield-bearing investment. Furthermore, the company will charge a 0.15 percent per annum management fee to facilitate secure and scalable infrastructure.
The company has partnered with institutional-grade service providers across the board to ensure customers pass KYC and AML screening. Among them is Clear Street, which will be Ondo Finance’s prime broker and will custody the fund’s securities in its account at the DTC. Notably, Coinbase Custody will custody any stablecoins the fund holds and Coinbase Prime will handle conversions between stablecoins and fiat. NAV Consulting will serve as the fund administrator, maintaining capital accounts for investors, and Richey May will serve as the fund’s tax advisor and auditor.
next