Ondo Finance Enhances T-Bill Token Speed with BlackRock’s Fund
Ondo Finance recently transferred $95 million to BlackRock’s newly launched tokenized fund, BUIDL, marking a groundbreaking use of a crypto protocol incorporating a tokenized fund for its services. The move aims to streamline instant settlements for Ondo’s US Treasury-backed token, OUSG, ultimately increasing its attractiveness and functionality within the crypto sphere.
The Transition to BlackRock’s Fund
- Nathan Allman, Ondo Finance’s CEO, emphasized that the transition to BlackRock’s BUIDL fund will significantly expedite the subscription and redemption process for OUSG, transforming it from the traditional settlement period of trade date plus two days to instantaneous transactions.
- This strategic shift was prompted by investor apprehensions regarding the previous extended redemption periods associated with OUSG, which did not align with the crypto market’s round-the-clock operational model.
Ongoing Movement of Assets
- Ondo has already transferred $15 million of OUSG backing assets to BUIDL, with an additional $80 million expected to follow suit imminently.
- Blockchain data corroborates this movement, indicating a substantial minting of $79.3 million in BUIDL tokens.
“We are thrilled to witness BlackRock’s adoption of securities tokenization with the launch of BUIDL, particularly the extensive collaboration with ecosystem participants. This not only reaffirms our original idea of a tokenized US Treasury fund but also supports our belief that traditional securities tokenization on public blockchains represents a significant advancement in financial markets evolution,” expressed the Ondo Finance Team.
Learn more: What is The Impact of Real World Asset (RWA) Tokenization?
BlackRock’s BUIDL fund, featuring the Ethereum-based token, is secured by US Treasury bills and repo agreements. Geared towards institutional clients on a whitelist basis, the fund requires a minimum investment of $5 million.
While this investment threshold may exclude smaller investors from direct engagement, it allows platforms like Ondo Finance to utilize the fund for their retail product offerings, bridging the gap between conventional finance and the crypto market.
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