Ondo Finance expands its U.S. Treasury-backed tokens to the Solana blockchain and ecosystem purposes, letting traders use them as collateral and in decentralized finance (DeFi).
Tokenized Treasuries spearheaded this 12 months’s real-world asset growth to convey conventional property like bonds and credit score to blockchain rails.
Tokenized real-world asset (RWA) platform Ondo Finance mentioned Tuesday it expanded its U.S. Treasury-backed tokens to the Solana (SOL) blockchain and its decentralized finance (DeFi) protocols resembling Orca and Raydium.
Solana is the primary layer 1 community after Ethereum the place traders can entry Ondo’s yield-generating stablecoin different U.S. Greenback Yield (USDY) and a tokenized model of BalckRock’s (BLK) short-term Treasury bond exchange-traded fund named OUSG. USDY can be obtainable on Ethereum layer 2 community Mantle and OUSG on Polygon.
Ondo’s growth comes contemporary on the heels of stablecoin issuer Circle introducing its euro-backed stablecoin EURC to the Solana ecosystem.
Tokenized U.S. Treasuries spearheaded this 12 months’s tokenization growth, as crypto native companies and large banks like JPMorgan and Citigroup are racing to convey extra conventional property resembling bonds and credit score on blockchain rails eyeing extra environment friendly operations and decrease prices. The competitors additionally will increase amongst blockchain networks to draw RWAs.
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The mixed market cap of tokenized treasuries choices mushroomed to over $760 million from $110 million earlier this 12 months, with Ondo being the second largest issuer after conventional finance big Franklin Templeton, information by RWA.xyz exhibits. The expansion was fueled by hovering bond yields on conventional markets because the U.S. central financial institution jacked up rates of interest whereas yields in DeFi lending markets plummeted in the course of the crypto winter.
With crypto markets rejuvenated and DeFi exercise choosing up, Ondo expects customers to faucet its tokens as a type of money in decentralized exchanges, collateral for lending and means for funds and settlements.
“The Solana DeFi ecosystem has demonstrated nice resilience and development potential, due to its progressive scaling and low transaction prices,” Nathan Allman, founder and CEO of Ondo Finance, mentioned in a press release. “Integrating Ondo’s choices with Solana not solely aligns with our strategic development but additionally paves the way in which for novel decentralized finance purposes leveraging tokenized US Treasuries, benefiting a wide selection of builders and customers.”
