Ondo, Securitize and BlackRock pitch OUSG for Sky’s $1 billion tokenization initiative

Ondo Finance, together with BlackRock and Securitize, has pitched OUSG to Sky’s Spark Tokenization Grand Prix, an open initiative designed to onboard up to $1 billion of tokenized real-world assets and expand the use of tokenized public securities in decentralized finance, the company said Thursday.

Ondo Finance is proud to collaborate with @BlackRock and @Securitize to have submitted the $OUSG proposal to @SkyEcosystem's (MakerDAO) Spark Tokenization Grand Prix, which aims to onboard $1B in tokenized financial assets. 🏁

🗣️ On the application, Carlos Domingo… https://t.co/XS0T8XrymW

— Ondo Finance (@Ondo) September 24, 2024

Ondo said the proposal would give SparkDAO and Sky access to a Treasury-backed RWA product while supporting portfolio diversification and liquidity.

“Ondo Finance and its affiliates are committed to building a long-term relationship and being the strategic partner to the Sky ecosystem,” Nathan Allman, founder and CEO of Ondo Finance, stated. “We are excited to provide the most effective backing for sUSDS and help make it into the preeminent savings instrument onchain for people globally.”

OUSG, short for Ondo Short-Term US Government Treasuries, is a tokenized US Treasury product that gives eligible investors onchain access to short-term government debt. It incorporates BlackRock’s BUIDL infrastructure and supports 24/7 subscriptions and redemptions, subject to eligibility and transaction limits.

OUSG currently supports instant subscriptions and redemptions of up to $25 million per day, with capacity planned to expand to $50 million by year-end, Ondo said. Its total value locked has surpassed $600 million.

Securitize co-founder and CEO Carlos Domingo said the collaboration with Ondo brings together web3 and traditional asset management expertise to provide onchain RWA exposure.

The proposal includes a liquidity facility supported by BlackRock, Securitize and Circle, with Ondo seeking to add more liquidity facilities and stablecoin pairs including USDS.

Ondo said Sky could potentially unwrap OUSG into BUIDL for portfolio rebalancing if both products are onboarded, while OUSG could also act as a buyer of other suitable assets.

The company said its Global Market initiative could further expand the fixed-income products available to the Sky ecosystem.