Strategic alliance with Polygon
Ondo Finance, which provides blockchain-enabled investment products for institutional investors, announced on the 13th a strategic alliance with Polygon Labs, which promotes network development and popularization of the crypto asset (virtual currency) Polygon (MATIC). As part of that, we have launched a tokenized US Treasury bond fund, OUSG, on the Polygon PoS blockchain.
We look forward to working alongside the @0x Polygon Labs team to bring US Treasuries and other liquids, high quality securities to on-chain investors everywhere. https://t.co/Eed5BesMEj
— Ondo Finance (@OndoFinance) July 13, 2023
OUSG is a fund that invests in the US short-term Treasury ETF (SHV) of BlackRock, the world’s largest asset management company, with an annualized yield (APR) of 5.13% (at the time of writing).
Ondo launched OUSG on the Ethereum blockchain in February of this year, but will expand the product to the Polygon network through a partnership with Polygon Labs. Ethereum’s L2 solution, Polygon, enables fast, low-cost transactions even during periods of congestion on the Ethereum mainnet.
Layer 2 (L2) (second layer)
Layer 2 is the “second layer” of the blockchain. By writing part of the transaction history in the off-chain or side-chain, we aim to reduce the load on the main chain and improve the processing speed.
“Built on Polygon, Ondo Finance is an important step in bridging the gap between decentralized finance (DeFi) and institutional finance,” said Colin Butler, Global Head of Institutional Capital at Polygon Labs. “It has said.
Ondo Finance President/COO Justin Schmidt said the partnership with Polygon will make on-chain assets more accessible to institutional investors. Going forward, he said he plans to roll out the company’s investment product, OMMF (a tokenized US government money market fund), and the company’s developed decentralized lending platform, Flux Finance, in Polygon.
In April last year, US asset management giant Franklin Templeton launched the first “on-chain US government money fund” (FOBXX) in the US using the Stellar blockchain. One year later, at the end of April this year, we expanded FOBXX to Polygon.
Expansion of the tokenized asset market
Ondo Finance was founded in the United States in 2021 by Goldman Sachs former Nathan Allman and Pinku Surana. In April 2022, the company raised approximately 2.6 billion yen in a series A investment round led by Peter Thiel’s Founders Fund and Pantera Capital. In the second half of the same year, it raised 1.3 billion yen in a token sale.
The company was the first company to tokenize a US Treasury bond in February this year, and according to Dune Analytics, its market capitalization reached about ¥19.1 billion ($139 million), making it the largest tokenized public securities market. share (approximately 50%).
Polygon Labs’ Butler noted that there is a “big move” in institutional adoption of tokenization, stating:
Over the next three to six months, the trend will become more evident. Because many companies will start to announce that they have been working on tokenization in the past.
Asset management firm Bernstein predicts that the market capitalization of tokenized real assets could grow to the equivalent of ¥687 trillion ($5 trillion) over the next five years.
connection:Demand for Tokenized U.S. Treasuries Soars as Crypto Investors Enter