Ondo Finance Expands Tokenized U.S. Treasurys to Polygon Network
Ondo Finance, a leading provider of tokenized U.S. Treasurys on the Ethereum blockchain, has announced the expansion of its product to the Polygon network. The company has introduced its OUSG token, a tokenized version of BlackRock’s short-term U.S. government bond exchange-traded fund (ETF), on Polygon as part of a strategic alliance.
In addition to the OUSG token, Ondo Finance plans to bring its upcoming yield-generating stablecoin alternative, a tokenized money market fund called OMMF, and the decentralized lending marketplace Flux Finance to Polygon pending governance approval. This move comes as demand for tokenized versions of traditional financial instruments such as U.S. Treasurys is on the rise among investors, with bond yields surpassing rates in decentralized finance (DeFi) lending markets.
The tokenized Treasurys market has grown to $600 million, with Ondo Finance’s OUSG token claiming a significant share of $140 million since its launch in January. Flux Finance, developed by Ondo’s team and governed by a decentralized autonomous organization (DAO), allows investors to take out loans by pledging OUSG as collateral, with $44 million of total value locked on the platform.
Following in the footsteps of asset management giant Franklin Templeton, which made its tokenized Franklin OnChain U.S. Government Money Fund (FOBXX) available on Polygon in 2021, Ondo Finance’s move to Polygon is seen as a crucial step in bridging the gap between DeFi and institutional-grade finance.
Polygon, a layer-2 scaling network of Ethereum, offers users cheaper and faster transactions compared to the mainnet, while still benefiting from Ethereum’s security. Colin Butler, global head of institutional capital at Polygon Labs, commented on Ondo Finance’s move, stating that it is a significant development in bringing together DeFi and institutional-grade finance.
Overall, the expansion of tokenized U.S. Treasurys to the Polygon network by Ondo Finance marks a significant milestone in the growing market for tokenized real-world assets, with the potential for substantial growth in the coming years.
For more information, visit: [Coindesk Article](https://www.coindesk.com/markets/2023/07/13/real-world-asset-platform-ondo-finance-expands-tokenized-treasurys-to-polygon/?utm_medium=referral&utm_source=rss&utm_campaign=headlines)
