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- Ondo Finance joins MakerDAO’s Spark Tokenization Grand Prix, proposing OUSG and USDY for $1B in tokenized assets.
- OUSG and USDY offer innovative on-chain investment opportunities, with growing demand across multiple blockchains.
In a tweet, Ondo Finance has announced its participation in the Sky Ecosystem’s Spark Tokenization Grand Prix, strengthening its position as a pioneer in on-chain financial assets.
Ondo Finance has submitted bids to the Grand Prix for two of its flagship products—OUSG and USDY—with a combined Total Value Locked (TVL) of more than $600 million, with the goal of onboarding $1 billion in tokenized financial assets.
This move emphasizes the growing relevance of tokenized assets in the decentralized finance (DeFi) industry, as well as Ondo’s key role in driving this growth.
1/ As the market leader in RWAs with a combined TVL exceeding $600M, Ondo Finance is excited to submit our proposals to the @SkyEcosystem's (MakerDAO) Spark Tokenization Grand Prix. 🏁
The Spark Tokenization Grand Prix aims to onboard $1B in tokenized financial assets. Our… pic.twitter.com/dMOoanUtDE
— Ondo Finance (@OndoFinance) September 23, 2024
OUSG: A Game-Changer for Blockchain-Based Peer-to-Peer Funds
The OUSG fund, one of Ondo Finance’s flagship offerings, is the first peer-to-peer transferable fund available on the blockchain. It provides various benefits, including lower costs, lower minimum investment criteria, and round-the-clock quick investment and redemption options.
Perhaps most importantly, OUSG guarantees daily interest distributions, making it an appealing choice for investors looking for liquidity and flexibility. The majority of OUSG’s assets are now invested in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), indicating a solid cooperation between Ondo Finance and BlackRock.
With this collaboration, Ondo will offer direct conversions between OUSG and BUIDL for the Sky Ecosystem. Carlos Domingo, co-founder & CEO of Securitize, stated:
“Our collaboration with Ondo demonstrates how web3 native companies and traditional asset managers can partner to bring best in class products onchain and provide crypto-native capital with exposure to RWAs.”
This seamless connection is designed to give consumers access to the best features of both funds, ultimately reinforcing OUSG’s position as the most effective backer of sUSDS. As a result, OUSG has the potential to become a popular savings tool among worldwide on-chain investors.
USDY: The Permissionless Yieldcoin Leading On-Chain Finance
Along with OUSG, USDY is another key service from Ondo Finance. This permissionless yieldcoin has acquired significant traction, now worth over $400 million in TVL and the most widely held yieldcoin of its type.
USDY has been incorporated into over 70 systems covering seven distinct blockchains, including Ethereum, Solana, Aptos, Sui, Mantle, Mantra, and Cosmos, through Noble. By making USDY the first native tokenized real-world asset on many of these chains, Ondo Finance has created a number of novel use cases for both users and developers in these ecosystems.
The token’s capacity to provide deep liquidity while also generating better yield makes it an excellent asset for the Sky Ecosystem, which aspires to include high-quality financial goods in its offers.
The need for on-chain Treasury has constantly increased, accelerating the adoption of Ondo Finance’s products. A significant example is the Arbitrum DAO, which recently diversified 6 million ARB into USDY, making it the second-largest allocation behind BlackRock’s BUIDL.
Furthermore, Ondo Finance has applied to incorporate USDY and OUSG in the Ethena Reserve Fund, indicating that it intends to broaden the scope of its operations in the DeFi space.
Another notable feature of Ondo Finance’s ecosystem is the high yields provided to its members. For example, USDY now has an amazing annual percentage yield (APY) of 8.94%, which is available to all customers, including those in the United States.
This yield, which sticks out in a market known for fluctuating returns, is one of the causes driving the increased interest in Ondo’s tokenized assets.
Recent economic developments have emphasized the potential for yieldcoins such as USDY to change the financial landscape. According to CNF, the Federal Reserve’s decision to lower interest rates could dramatically increase demand for yieldcoins, establishing them as a promising alternative investment.
As interest rates fall, yieldcoins are expected to provide attractive returns while improving investor security, boosting the expansion of on-chain financing and tokenized assets.