Fun

Ondo Finance eyes tokenized treasury expansion amid crypto bull market

News Feed - 2024-02-23 12:02:51

Zhiyuan Sun8 hours agoOndo Finance eyes tokenized treasury expansion amid crypto bull marketThe tokenization protocol opened its first Hong Kong office last month.678 Total views7 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksUnited States Treasury tokenization protocol Ondo Finance predicts the conflux of traditional finance with blockchain technology in the coming years and is expanding its own products accordingly.


Last month, the protocol opened up its first office in Hong Kong to expand its on-chain treasury offerings to Asia Pacific investors. In an interview with Cointelegraph, Nathan Allman, CEO of Ondo Finance, said that tokenized treasuries can have several advantages over simply holding the underlying treasuries themselves.


“Tokenized treasuries can be transferred on-chain, 24/7, including in decentralized and centralized exchanges and over-the-counter," said Allman. “They can also interact with smart contracts, unlike Treasurys held in a traditional brokerage account, allowing investors to take advantage of DeFi while earning sustainable yield.""Flux [Ondo"s DeFi protocol] is a perfect example, where peer-to-pool lending with algorithmically determined interest rates can take place with no intermediation."


Ondo has three products: OUSG, which provides exposure to U.S. Treasurys; OMMF, which provides exposure to U.S. money market funds; and USDY, providing a yield-bearing alternative to conventional stablecoins that are comprised of short-term Treasurys and bank deposits. The pools have around $186 million in total value locked and possess an annual yield of around 5%. Their underlying assets, the U.S. Treasurys, are guaranteed by the United States government, with revenue from sources such as income tax and corporate taxes paying for its interest expenses. 


"Cash [Treasury] equivalents are only the first step and we’ll be announcing soon our plans to bring the other $100T+ of securities on-chain," Allman told Cointelegraph. "We are also looking to address core infrastructure-layer challenges to accelerate the large-scale creation and use of tokenized securities on public blockchains."


Currently, Ondo"s tokenized assets are not available to U.S. investors due to a lack of regulatory clarity in the country. Non-U.S. users who wish to invest in Ondo’s treasury pools must first pass a Know Your Customer and Anti-Money Laundering verification check and hold the tokenized assets for at least 40 days before transferring them. “While there are no dedicated regulations for tokenized assets, the current form of products available in the tokenized market is structured in a way that it can be sufficiently covered under existing regulations and exemptions [outside the U.S.],” Allman stated.


Hong Kong is one such jurisdiction where regulators are keen on onboarding real-world asset tokenizers. In a letter on Feb. 20, the Hong Kong Monetary Authority outlines principles of governance and risk management, asset segregation, outsourcing, disclosure, and Anti-Money Laundering and Counter-Financing of Terrorism for tokenization firms. The new rules are expected to take effect in August. 


Related: Real-world asset protocols outperform DeFi blue chips due to tokenization wave# Blockchain# Cryptocurrencies# Bonds# DeFiAdd reactionAdd reactionRead moreOCC acting head compares crypto-asset intermediaries to corrupt bankWeb3 game Pixels now valued at $2.7B after migration to RoninYou can now deploy your own L3 rollup for $50 a month

News Feed

SLP Token Fuels Scooter Rental Business in Taiwan, Investors to Get Their Dividends in BCH
SLP Token Fuels Scooter Rental Business in Taiwan, Investors to Get Their Dividends in BCH A company running a small scooter rental service in Taipei, Taiwan’s capital city
Foreign crypto miners could be spying on US bases: Elizabeth Warren
Martin Young3 hours agoForeign crypto miners could be spying on US bases: Elizabeth WarrenSenator Warren has lambasted foreign-owned crypto miners in the country, saying they’re loud, hot, and “suck up a ton of elect
Brian Quarmby3 hours agoBitcoin Ordinals NFT trading volume tanks 98% since May — DappRadarAlongside the declining trading volumes, the number of Bitcoin Ordinals transactions dropped by 97% to just 20,571 in mid-Augus
LBank Exchange Will List Drive Crypto (DRIVECRYPTO) on August 9, 2022
LBank Exchange Will List Drive Crypto (DRIVECRYPTO) on August 9, 2022 press release PRESS RELEASE. INTERNET CITY, DUBAI, Aug. 8, 2022 – LBank Exchange, a global digital asset
Gareth Jenkinson9 hours agoBlockchain IoT firm Nodle goes open source with Web3 Bluetooth ‘nanocomputer’ stickerNodle unveils open-source Bluetooth ‘nanocomputer’ N1 sticker aimed at increasing IoT connectivity a
Korean Province Seizes Cryptocurrencies From 1,661 Investors for Unpaid Fines
Korean Province Seizes Cryptocurrencies From 1,661 Investors for Unpaid Fines A South Korean province has seized cryptocurrencies worth over $5 million from 1,661 investors who wer
Malaysia Seizes 1,720 Bitcoin Mining Machines in Electricity Theft Crackdown
Malaysia Seizes 1,720 Bitcoin Mining Machines in Electricity Theft Crackdown Police in Malaysia have shut down a bitcoin mining operation and seized 1,720 bitcoin mining machines i
Bitcoin Finds Support At $94.5K As STH Realized Prize Signals Strength
Este artículo también está disponible en español. Bitcoin has faced a volatile week, with sharp moves above and below the pivotal $100,000 mark, but the price still strug
Bitcoin levels to watch next as BTC price risks sub-$60K retest
William Suberg1 hour agoBitcoin levels to watch next as BTC price risks sub-$60K retestBitcoin bulls face an uphill struggle to stem selling amid worries that BTC price weakness will end up challenging levels below $60,0
Ana Paula Pereira3 hours agoVC Roundup: private accounts, tokenization, and healthcare infrastructure grab investors’ attentionNocturne, Untangled Finance, Account Labs, Rymedi, and Waterfall network secure venture cap
Bitcoin, Ethereum Technical Analysis: BTC Nears $29,000 to Start April, as ETH Also Rebounds
Bitcoin, Ethereum Technical Analysis: BTC Nears $29,000 to Start April, as ETH Also Rebounds Bitcoin was back in the green on Saturday, as prices moved close to the $29,000 level t
Historical Data Shows What To Expect From Ethereum Price In Q1 2025 – It’s Very Bullish
Este artículo también está disponible en español. Historical data shows that the Ethereum price could enjoy huge gains in the first quarter of 2025. Based on this data, c