A Big Move in Crypto Finance: Ondo and Figure Team Up
Ondo Finance has made a strategic move by acquiring $25 million worth of YLDS, a stablecoin issued by Figure Technology Solutions. This acquisition aims to diversify and enhance the appeal of Ondo's tokenized fund.
A Diversified Portfolio
The YLDS stablecoin is now part of a robust portfolio that includes tokenized Treasury products from financial giants like:
- BlackRock
- Fidelity
- Franklin Templeton
- WisdomTree
The Ondo Short-Term US Government Bond Fund (OUSG) is designed for institutional investors, offering:
- 24/7 redemptions
- An estimated annual return of 3.68%
- A Total Value Locked (TVL) of approximately $777 million
Figure Technology Solutions: A Key Player
Figure Technology Solutions operates on the Provenance blockchain, providing lending and capital-markets infrastructure. They have originated over $19 billion in loans, including:
- Home-equity lines
- Mortgage products
- Crypto-backed credit
Figure recently completed its Nasdaq IPO, boosting its market presence. The YLDS stablecoin has a market capitalization of around $100 million, according to DefiLlama data.
Ondo Finance: Tokenizing Traditional Finance
Founded in 2021, Ondo Finance specializes in tokenizing traditional financial assets. Recent expansions include:
- Over 100 tokenized Wall Street stocks and ETFs on BNB Chain
- Regulatory approval from the Liechtenstein Financial Market Authority (FMA) to offer tokenized stocks in Europe
Market Reactions and Trends
- Figure’s stock price increased nearly 4% in early trading on Monday, according to Yahoo Finance.
- Crypto-backed lending is gaining traction:
- Block Earner introduced Bitcoin-backed home loans in Australia.
- Tether invested in Ledn, a platform offering Bitcoin-backed consumer loans.
- Coinbase launched Ether-backed loans for US customers, with $1.28 billion in loan originations since launch.
