Ondo Finance recently announced tokenized US treasuries and bonds on Twitter. The latest tweets by Nathan Allman talk about helping stablecoin users invest in US Treasuries.
The platform will facilitate it through a bankruptcy-remote, daily liquid, tokenized fund through licensed service providers. The goal of the integration is to help investors easily and quickly migrate between traditional assets and stablecoins.
Their focus is on offering low-risk, high-quality products, and short-term US Treasuries are an ideal start. The traditional capital market can now be accessed by investors who hold over 100 billion dollars of stablecoins without any yield.
Since these stablecoins include approved smart contracts, Ondo aims to support them through a complaint on-chain system. This will be beneficial for both permissionless and permissioned assets. In the end, the development will elevate the transparency, efficiency, and accessibility of the markets.
According to the latest post by Ondo Finance, three types of share classes are currently supported by the platform:
- OHYG (High Yield Corporate Bond Fund): It will invest in corporate bonds with a high yield
- OSTB (Short-Term Investment Grade Bond Fund): It will invest in investment grade bonds for a short term
- OUSG (US Government Bond Fund): It will invest in US treasuries for short term
Ondo will also act as the investment advisor that facilitates the trading of the ETFs. The company will charge a 0.15% yearly management fee from the users. Given the current state of the crypto market, Ondo has decided to only collaborate with regulated service providers.
The company is also holding assets with custodians who are bankruptcy-remote qualified. Names like NAV Consulting, Clear Street, and Coinbase Custody have been affiliated with Ondo for the entire process. Seeing the sheer stature of these parties, most users have expressed utmost faith in Ondo Finance.