Ondo Finance is increasing its US Treasury-backed tokens to the Solana blockchain and ecosystem purposes, permitting buyers to make use of them as collateral and in decentralized finance (DeFi).
Tokenized Treasuries spearheaded actual asset development this yr by bringing conventional property similar to bonds and credit score to blockchain rails.
Tokenized real-world asset (RWA) platform Ondo Finance stated Tuesday it has expanded its US Treasury-backed tokens to the Solana (SOL) blockchain and its decentralized finance (DeFi) protocols similar to Orca and Raydium.
Solana is the primary layer 1 community after Ethereum the place buyers can entry Ondo’s return-generating stablecoin different US Greenback Yield (USDY) and a tokenized model of BalckRock’s (BLK) exchange-traded short-term authorities bond fund referred to as OUSG. USDY can also be out there on Ethereum Layer 2 community Mantle and OUSG on Polygon.
Ondo’s enlargement comes contemporary on the heels of the stablecoin issuer Circle introduces its euro-backed stablecoin EURC to the Solana ecosystem.
Tokenized US authorities bonds led the tokenization increase this yr, similar to crypto-native corporations and huge banks like JPMorgan and Citigroup is racing to deliver extra conventional property similar to bonds and credit score onto blockchain rails, with an eye fixed to extra environment friendly operations and decrease prices. Competitors amongst blockchain networks can also be growing to draw RWAs.
Learn extra: The yr of institutional funding in actual property
The mixed market capitalization of tokenized treasuries choices rose to over $760 million from $110 million earlier this yr, with Ondo the second largest issuer after conventional finance large Franklin Templeton. present knowledge from RWA.xyz. The expansion was fueled by rising bond yields in conventional markets, because the US central financial institution hiked charges whereas charges within the DeFi lending markets plummeted in the course of the crypto winter.
As crypto markets have rejuvenated and DeFi exercise will increase, Ondo expects customers will use its tokens as a type of money in decentralized exchanges, as collateral for loans, and as a method of funds and settlements.
“The Solana DeFi ecosystem has proven nice resilience and development potential, because of its progressive scalability and low transaction charges,” stated Nathan Allman, founder and CEO of Ondo Finance, in a press release. “The combination of Ondo’s providing with Solana not solely aligns with our strategic development, but additionally paves the best way for brand new decentralized finance purposes that leverage tokenized US Treasuries, benefiting a variety of builders and customers.”