DeFi project Ondo Finance launches tokenised US Treasuries

The Ondo Finance project, specialising in decentralised investment products, unveiled tokenised versions of US Treasuries.

We are excited to announce that we are making US Treasuries easily accessible to stablecoin holders in tokenized format! Check out our new site at https://t.co/z0GWsjKn21 for more info, and read more below 👇 https://t.co/4YoNVpUbOX

— Ondo Finance (@OndoFinance) January 10, 2023

“Although we intend to offer a broad range of securities and other credit products to investors, we are starting with short-term U.S. Treasuries through large, highly liquid ETF, managed by institutions such as BlackRock and PIMCO,” the project blog says.

According to Nathan Allman, the CEO and founder of Ondo Finance, the new products are available to holders of stablecoins and fiat currencies. Among them:

• US Government Bond Fund (OUSG), focused exclusively on short-term US Treasuries;
• Short-Term Investment Grade Bond Fund (OSTB): short-term investment-grade corporate bonds;
• High Yield Corporate Bond Fund (OHYG): high-yield corporate bonds.

Allman expressed confidence that security-tokens and the protocols backing them, in compliance with regulatory requirements, will make financial markets more transparent, efficient and accessible.

Investors can earn interest on tokenised assets, transfer them to other whitelisted participants, and also use them in lending protocols for trading and other applications.

The project charges an annual management fee of 0.15%.

The project, created by former Goldman Sachs employees, raised $4 million in seed funding in 2021.

In April last year, Ondo Finance raised $20 million following a Series A round led by Founders Fund and Pantera Capital. A few months later the project raised $10 million through a token sale on CoinList.

In October, the Israeli Ministry of Finance and the Tel Aviv Stock Exchange launched a pilot project to tokenise bonds.

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