Ondo Finance
A tokenized Treasury fund has two legs: the token that moves on a blockchain and the cash paid out when a holder redeems. Ondo Finance issues tokenized funds and stocks. In one pilot a holder redeemed its OUSG tokens on the XRP Ledger and received US dollars in a Singapore bank account through Mastercard and J.P. Morgan's Kinexys, outside normal banking hours.
Treasury funds and tokenized stocks
Ondo Finance issues tokenized investments and builds the infrastructure for them. OUSG gives institutional investors exposure to short-term US Treasuries. USDY, which Ondo calls a yieldcoin, and Ondo Stocks, which brings listed US shares and ETFs on chain as tokens, are offered to investors outside the United States. Ondo shows BlackRock, Franklin Templeton, Goldman Sachs and Wellington Management among its partners.
Redemption across banks and borders
In the pilot Ondo describes on its blog, Ripple redeemed part of its OUSG holding on the XRP Ledger. Ondo processed the redemption and sent the payout instruction through Mastercard's Multi-Token Network to Kinexys, which debited Ondo's blockchain deposit account at J.P. Morgan and paid the dollars to Ripple's bank account in Singapore. The XRP Ledger settled the token leg in under five seconds. Ondo calls it the first cross-border, cross-bank redemption of tokenized US Treasuries in near real time.
Ondo also ran a cross-chain delivery-versus-payment trade with Kinexys and Chainlink, and lets qualified investors subscribe to and redeem OUSG around the clock with Ripple's RLUSD stablecoin on the XRP Ledger.
Ondo in Europe
Liechtenstein's Financial Market Authority approved the base prospectus of Ondo Global Markets, which Ondo uses to offer tokenized US stocks and ETFs across the European Economic Area under the passporting rules, Cointelegraph reported. Before that, Ondo had launched in Switzerland with BX Digital of Boerse Stuttgart Group. Ondo Stocks and USDY are not offered to US persons.
Upcoming tokenization and digital asset events
Investment & Digital Assets
Payments & Digital Money
What does Ondo Finance do?
Ondo Finance issues tokenized versions of traditional assets: the US Treasury fund OUSG, the token USDY and tokenized US stocks and ETFs under the name Ondo Stocks. It also builds infrastructure for other issuers of tokenized Treasuries and stablecoins.
What is OUSG?
OUSG is Ondo's tokenized fund for institutional investors with exposure to short-term US Treasuries. Qualified investors can subscribe and redeem it on chain, including with the RLUSD stablecoin on the XRP Ledger.
Can investors in Europe use Ondo?
Ondo offers tokenized US stocks and ETFs in the European Economic Area on the basis of a prospectus approved in Liechtenstein. Its products are not offered to US persons.
How does Ondo work with banks?
Ondo holds a blockchain deposit account with J.P. Morgan's Kinexys, which paid out US dollars in the cross-border OUSG redemption pilot with Mastercard and Ripple.
Tokenized funds and stocks
Settlement and payments
Ondo Finance and Finance Loop
Finance Loop covers tokenized Treasuries and stocks in its Investment & Digital Assets track and the cash leg of their settlement in Payments & Digital Money. Finance Loop has a strategic cooperation with 21X, the Frankfurt venue where tokenized securities trade and settle against tokenized cash.
Finance Loop is a professional network and has the goal of driving the adoption of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.