Ondo Finance Joins Mastercard’s Blockchain Initiative

The real-world asset tokenization project Ondo Finance has joined Mastercard’s Multi-Token Network (MTN) blockchain system as part of a new partnership.

Businesses participating in the network will gain access to tokenized assets through the company’s investment product based on the Ondo’s Short-Term US Government Treasuries Fund (OUSG).

According to the press release, a “large portion” of OUSG assets is backed by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), short-term US Treasury bonds, and GSE funds from Franklin Templeton, WisdomTree, Wellington Management, and Fundbridge Capital.

Trials of the MTN blockchain began in 2023 with tokenized bank deposits. Mastercard aims to build a scalable infrastructure for cross-border payments and tokenized liquidity operations.

“What makes this partnership significant is that it enables settlements between different banks around the clock, on traditional financial rails and for many institutions,” noted Ondo Finance’s Chief Strategy Officer Ian De Bode in an interview with Mastercard Newsroom.

According to him, investment products like tokenized stocks and ETFs will appear on public blockchains “much sooner than people think.”

Earlier, Bitfinex Securities COO Jesse Knutson opined that traditional financial institutions will become the main driver of growth for the asset tokenization market.