Ondo Finance recently joined hands with Solana to expand its US Treasury-backed tokens. The collaboration brings tokenized real-world assets to the Solana network.
Along with the tokens, Ondo Finance is bringing its DeFi protocols, like Raydium and Orca, to Solana. As the first L1 network after Ethereum, Solana allows investors to use Ondo’s yield-generating stablecoin alternative, USDY.
In addition, it lets them access a tokenized version of BlackRock’s short-term Treasury bond ETF, OUSG. USDY is already available on the Ethereum L2 network Mantle, while OUSG is available on Polygon.
Solana recently formed a strategic alliance with Circle, enhancing the company’s market standing. Solana will now support EURC, the Euro-backed stablecoin developed by Circle.
The financial market has witnessed tokenized US Treasuries leading the tokenization growth in relation to the recent partnership. Institutions such as Citigroup and JPMorgan are competing to implement conventional assets such as bonds and credit on the blockchain.
The increasing competition has also attracted more real-world asset ventures to the market. Currently, the total market capitalization of tokenized treasuries stands at 760 million dollars. The number has witnessed massive growth compared to 110 million dollars at the start of the year.
Since Ondo is the second-biggest issuer after Franklin Templeton, the collaboration is highly beneficial for Solana. At the same time, Solana’s market network and cost-efficient approach will complement Ondo’s operations impeccably.
Despite the DeFi lending market plummeting during the crypto winter, it is finally being rejuvenated. The overall crypto market is also breathing life after a long bearish period.
As DeFi activity is picking up, Ondo is expecting users to tap its tokens as a cash form in DEXs. The tokens will also serve as collateral for lending and as a means for settlements and payments.
Source: https://www.cryptonewsz.com/ondo-finance-expanding-us-treasury-backed-tokens-with-solana/