Latest news with #OUSG
Yahoo
30-07-2025
- Business
- Yahoo
What are yield coins? Yield bearing assets explained
What are yield coins? Yield bearing assets explained originally appeared on TheStreet. Tokenization isn't just for stablecoins. Ian De Bode, chief strategy officer at Ondo Finance, coined the term 'yield coins' to describe tokenized treasury funds that pay daily yield. In an interview with TheStreet Roundtable, De Bode explained that while stablecoins tokenize cash for global 24‑7 access, they typically don't pay out interest and have uneven investor protections. Yield coins address that gap by combining safety with automatic yield are yield coins? 'Yield coins is a term that we coined for any tokenized treasury fund,' De Bode said. Two of Ondo's flagship yield coins are OUSG and USDY. OUSG is a 3(c)(7) fund offered to qualifying purchasers and accredited investors worldwide. Investors onboard via a simple KYC process, deposit stablecoins and mint OUSG tokens 24‑7. Each token represents a share in U.S. Treasuries held in reserve and can transfer peer‑to‑peer among approved wallets. USDY is a continuous‑registration fund for non‑US investors. It behaves more like a stablecoin — quasi‑permissionless on secondary markets — yet automatically reinvests its yield into more Treasury holdings. Both products let users 'park their cash on‑chain and still earn yield on it on a daily basis,' De Bode noted, while maintaining industry‑leading reserve disclosures and legal yield coins work Traditional Treasuries run on financial rails with cut-off times: if you miss the daily window, you forfeit that day's interest. Yield coins operate on blockchain rails, so subscriptions settle instantly and begin accruing yield the moment tokens mint. De Bode explained, 'You can subscribe to our funds 24‑7 via stablecoins on chain the moment the subscription hits, which is instantly on crypto rails.' Once minted, yield coins can engage with decentralized finance. Investors may use OUSG or USDY as collateral for repo transactions or margin loans over weekends — capabilities unavailable to on‑chain holders of traditional Treasuries. Yield coins derive their yield by investing deposits into underlying Treasury instruments and tokenized Treasury funds — such as BlackRock's BUIDL fund and Franklin Templeton's Benji fund — and reinvesting the interest back into reserves. Currently, OUSG yields about 4.1% and USDY about 4.29%. Balancing stablecoins and yield coins De Bode likened the relationship between stablecoins and yield coins to checking versus savings accounts. Stablecoins remain the primary liquidity pairs in crypto trading, offering instant on‑ramps and off‑ramps without yield. Yield coins, by contrast, serve as a savings vehicle — letting users earn the risk‑free rate on‑chain until they need liquidity again. He advised that investors choose instruments based on need: 'It sometimes is still helpful to just have cash lying around that you can very easily send to other individuals without necessarily having to earn interest on it.' Getting started with yield coins OUSG requires accredited or qualified‑purchaser status while USDY is open to non‑US investors. Onboarding involves a brief compliance check, after which users can mint or burn tokens via stablecoins or traditional wires. By tokenizing Treasuries with built‑in yield and robust investor protections, yield coins offer a simple, flexible way to earn interest and access DeFi. As De Bode puts it, 'Until we tokenized our tokenized Treasury funds, it was very difficult to essentially earn the risk‑free rate on chain.' With yield coins, that is now a reality. What are yield coins? Yield bearing assets explained first appeared on TheStreet on Jul 30, 2025 This story was originally reported by TheStreet on Jul 30, 2025, where it first appeared. Sign in to access your portfolio
Crypto Insight
13-06-2025
- Business
- Crypto Insight
Chainlink, JPMorgan, Ondo Finance complete crosschain treasury settlement
Chainlink, JPMorgan's Kinexys and Ondo Finance completed a 'first-of-its-kind' crosschain delivery versus payment (DvP) settlement between a permissioned payment network and a public testnet. The test involved Kinexys Digital Payments, a permissioned network operated by JPMorgan and Ondo Chain's testnet, which is focused on real-world asset (RWA) tokenization, Chainlink said in a Thursday announcement. The settlement was coordinated using Chainlink's Runtime Environment (CRE), an offchain compute layer designed for interoperable financial systems. At the center of the transaction was OUSG, Ondo's tokenized US Treasurys fund, which was exchanged for payment via Kinexys' platform. The move comes as TradFi and decentralized finance (DeFi) increasingly converge. With over $23 billion in tokenized RWAs now live on public blockchains, the need for crosschain settlements grows. How was the settlement executed? The recent DvP test involved the exchange of OUSG and a simultaneous fiat payment through Kinexys Digital Payments. RE orchestrated the workflow, verified escrow events on Ondo Chain, initiated payment instructions via Kinexys and coordinated the final settlement. Notably, only transaction instructions crossed between networks. The successful transaction is the first to be executed on the Ondo Chain testnet and represents an expansion of Kinexys' settlement capabilities beyond private chains. 'CRE is highly configurable and can be used to settle different types of DvP transactions of varying complexity, including single-chain and multichain DvP transactions, enabling complex financial activity with reduced counterparty and settlement risk,' Chainlink said. RWA market surges 260% In the first half of 2025, the RWA market surged more than 260%, surpassing $23 billion in total valuation. It was $8.6 billion at the beginning of the year, according to a Binance Research report shared with Cointelegraph. Tokenized private credit led the RWA market boom, accounting for about 58% of the market share, followed by tokenized US Treasury debt, which accounted for 34%. New players also continue to enter the market. On June 5, Pan-European fund manager APS purchased 3 million euros ($3.4 million) in tokenized bonds tied to two Italian residential properties listed on MetaWealth. Source:
Yahoo
11-06-2025
- Business
- Yahoo
Ondo Finance Debuts $693M Treasury Token on XRP Ledger Amid Soaring RWA Trend
Tokenization platform Ondo Finance ONDO has debuted its flagship U.S. treasury-backed token on XRP Ledger (XRPL), giving institutional investors new tools to manage cash on the blockchain. Qualified purchasers can mint and redeem Ondo Short-Term U.S. Government Treasuries (OUSG) tokens around the clock using Ripple's U.S. dollar stablecoin RLUSD, the press release said. Initial supply of the token on XRPL is $30 million to ensure liquidity, the firms said. "This integration strengthens our commitment to providing reliable and composable infrastructure at the intersection of traditional finance and DeFi," Ian De Bode, chief strategy officer at Ondo Finance, said in a statement. The expansion follows Ondo's announcement in January, targeting to go live in six months, CoinDesk reported then. Tokenized Treasuries have spearheaded the rapidly growing real-world asset trend, which is bringing traditional financial instruments like bonds, funds and real estate onto blockchain rails. The market value of tokenized U.S. Treasuries mushroomed to $7.2 billion, up from $1.7 billion a year ago, according to These products allow investors to park idle cash without leaving blockchain rails to earn a steady yield that's independent from crypto markets, similar to a money market fund. Increasingly, they are also used as reserve assets for decentralized finance (DeFi) protocols and as collateral in trading and asset management. OUSG with $693 million supply is the third largest of its kind following BlackRock's BUIDL and Franklin Templeton's BENJI, per data. The new offering also fits into XRP Ledger's growing ambition to position itself as a hub for tokenized assets. This week, Guggenheim Treasury Services said it will issue Digital Commercial Paper on the network, while Dubai announced last month a tokenized real estate platform developed on XRPL as part of its $16 billion property tokenization in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Wall Street 2.0: What stablecoins did for the dollar, Ondo is doing to capital markets
Wall Street 2.0: What stablecoins did for the dollar, Ondo is doing to capital markets originally appeared on TheStreet. The old system still sleeps. Closes on weekends. Clears trades in days. Moves money in loops and calls it 'settlement.' A slow maze of custodians, paper trails, and batch processors dressed up as modern finance. Everyone nods. No one questions the lag. It's a scaffold of rules and rituals. Stitched together by inertia, policy, and trust in institutions that forgot how to earn it. Then stablecoins exposed the whole thing. They didn't just digitize the dollar, they outperformed it. Moved faster. Worked harder. Never closed. The result? A $230 billion asset class, foundational to crypto and leaking into TradFi like a quiet virus. A dollar that didn't need permission. Nathan Allman, founder and CEO of Ondo Finance saw it early. The Markets aren't built for a world that never closes. 'The financial system wasn't designed for the world we live in—it was stitched together over centuries,' he wrote. 'It's a patchwork of middlemen, paper trails, and private databases.' 'We have global investors, 24/7 assets, and programmable money. But the infrastructure they run on is still built around banking hours.' 'That's the disconnect we're addressing.' OUSG isn't a whitepaper. It's a pipeline. It wraps short-term U.S. Treasuries into a tokenized instrument that behaves like software. Internet-native yield. Real-time liquidity. Fully composable. It's not trying to be flashy. It just works. This isn't a concept. It's already in motion: -$1.3 billion in Treasuries tokenized between OUSG and USDY -BlackRock's BUIDL sits around $2.9b -Franklin Templeton's fund holds roughly $752b The total tokenized RWA market has surpassed $7 billion and it's no longer just theory. It's becoming standard infrastructure. 'Our approach is simple,' Allman says. 'Tokenize high-quality, yield-bearing assets. Wrap them in code. Make them programmable. Make them liquid.' 'What we've seen with OUSG is that institutions want the yield of Treasuries, but they also want the speed and composability of crypto. We're giving them both.' Earlier this month, Ondo integrated PayPal's PYUSD, bridging Treasuries and a major fiat-backed stablecoin. The result? Investors can now convert between sovereign debt and digital dollars instantly, on-chain. No wires. No waiting. Just finality. 'Finance is built on conversions,' Allman said in a recent statement. 'If you can't convert between assets instantly, at scale, you don't have real liquidity—you just have accounting entries.' The ambition isn't subtle. 'What stablecoins did for the dollar, Ondo will do for capital markets.' Not a tagline. A declaration of intent. Stablecoins cracked one flaw. Dollars couldn't function online. The rest of finance never caught up—yield markets, settlement logic, compliance theater—all still trapped in a paper-era fantasy of how money's supposed to move. Ondo's rewriting the stack—liquidity without pause, compliance baked into the logic, capital that moves like it forgot friction was ever a thing. 'We're not trying to create parallel universes,' Allman says. 'We're building bridges—between legacy finance and programmable finance.' The world is catching on. The World Economic Forum, Citi, and Bank of America all estimate tokenized assets could hit $5–10 trillion by 2030 Ondo isn't projecting it. Ondo is routing it. 'We're not here to disrupt,' Allman says. 'We're here to rebuild. The rails. The flow. The logic of how capital moves.' Ondo isn't projecting it. Ondo is routing it.' Most people can't move money without a delay. They can't see all their assets in one place. They can't borrow against U.S. Treasuries unless they're already rich or plugged in. Meanwhile, the machinery is unmistakably antiquated—batch processes, blind spots, and rails built for a slower world Wall Street 2.0: What stablecoins did for the dollar, Ondo is doing to capital markets first appeared on TheStreet on May 30, 2025 This story was originally reported by TheStreet on May 30, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
JPMorgan's Kinexys Connects With Public Blockchain on Ondo Chain Testnet Debut
JPMorgan (JPM) took its first step onto a public blockchain network through its Kinexys Digital Payments platform, settling a tokenized U.S. Treasury transaction on Ondo Chain's testnet. The pilot, detailed in a press release shared with CoinDesk, marks the debut of a Delivery versus Payment (DvP) transaction on the testnet, a new layer-1 blockchain designed to support institutional-grade real-world assets. Kinexys, which the release says processes an average of over $2 billion in daily transaction volume, handled the payment leg, while Ondo Finance's tokenized short-term Treasury fund (OUSG) formed the asset leg. Chainlink Runtime Environment — a system for coordinating cross-chain workflows —secured the settlement across the two networks. This is the first time Kinexys, the Wall Street bank's permissioned network, has executed a transaction on a public blockchain. The move signals a shift as the bank explores ways to extend its institutional payments infrastructure into the growing market for real-world asset tokenization. ' By securely and thoughtfully connecting our institutional payments solution with both external public and private blockchain infrastructures seamlessly, we can offer our clients and the broader financial ecosystem a wider range of benefits and scalable solutions for settling transactions,' Nelli Zaltsman, head of settlement solutions at Kinexys, said in the statement. Traditional finance often struggles with DvP transactions, which require payments to be made before or at the same time as delivery of securities, due to fragmented systems and manual steps that delay settlement, the release notes. It points to data suggesting payment and settlement failures have cost market participants over $900 billion in the past 10 years. Blockchain technology, it says, can be leveraged to conduct simultaneous cross-chain transactions. JPMorgan has been expanding its blockchain-based payments network, having recently added support for British-pound denominated accounts. Error while retrieving data Sign in to access your portfolio Error while retrieving data
