Ondo Finance launches three tokenized U.S. Treasuries and bonds

Quick Take

  • DeFi investment firm Ondo Finance has tokenized U.S. treasuries and bond investments. 
  • The funds let investors earn tokenized fund interests that are transferrable on-chain and approved by smart contracts. 

Ondo Finance, a DeFi firm offering decentralized investment opportunities, has launched tokenized versions of U.S. treasuries and bonds. 

These tokenized products let stablecoin holders invest in bonds and treasuries, Ondo Finance noted in a company blog post. The three offerings upon launch include the U.S. Government Bond Fund, Short-Term Investment Grade Bond Fund and High Yield Corporate Bond Fund. 

"We envision these security tokens and protocols that support them as creating a compliant on-chain financial ecosystem supporting both permissioned and permissionless assets, ultimately improving the accessibility, transparency and efficiency of our markets," Ondo Finance founder and CEO Nathan Allman said. 

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Bond investors can net tokenized fund interests approved by smart contracts that are transferrable on-chain, according to the post. Ondo Finance earns a 0.15% annual management fee through these bonds.

Ondo Finance previously raised $10 million in a public token sale on July 6, 2022, The Block reported at the time. A few months before that, Peter Thiel's investment fund co-led a $20 million Series A funding round for Ondo Finance in April 2022. 


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About Author

MK Manoylov has been a reporter for The Block since 2020 — joining just before bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for the publication, covering any and all crypto news but with a penchant toward NFT, metaverse, web3 gaming, funding, crime, hack and crypto ecosystem stories. MK holds a graduate degree from New York University's Science, Health and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.

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