ONDO adds $25M in yield assets amid EU approval – Details here!

Key Takeaways

What is the significance of the recent purchase?

The Figure Technology YLDS addition strengthens and diversifies the OUSG yield sources, whose portfolio already includes funds from trusted asset managers.

How has the ONDO price reacted?

News of the BNB Chain expansion and the EU regulatory approval did little to stem the selling pressure behind the Ondo ecosystem token.

Ondo Finance [ONDO] announced the purchase of $25 million of YLDS, a yield-bearing stablecoin issued by Figure Technology Solutions. Terming it a strategic investment, the addition will enhance and diversify the yield source supporting OUSG.

OUSG (Ondo Short-Term U.S. Government Treasuries) is the flagship product of Ondo Finance.

OUSG has more than $780 million in total value locked (TVL) and gives investors exposure to U.S. Treasuries. It offers 24/7 redemption with an estimated annual return of 3.68%.

In addition, its multi-chain support expands accessibility for a wider range of users.

The recent purchase adds to the reserve portfolio, which already has tokenized Treasury products from well-known asset managers, such as BlackRock and Fidelity.

Ondo expansions bring U.S. markets worldwide

In October, Ondo Finance expanded its tokenized asset offerings to the BNB Chain. An announcement from the network read that over 100 tokenized stocks and exchange-traded funds (ETFs) went live.

On the 18th of November, the company stated that it had received regulatory approval to bring its products to the European Union (EU) and the broader European Economic Area (EEA).

Ondo Finance had obtained authorization from the Lichtenstein Financial Market Authority, a well-established European regulator.

This development meant the company’s tokenized stocks and ETFs were available to European investors and ensured it operated within the EU regulatory framework, adding to safety and appeal.

Tokenized yield-bearing real-world assets could be the next global financial revolution. If this prediction comes true, the Ondo Finance brand would likely keep growing in the coming years.

Source: ONDO/USDT on TradingView

Despite the bullish developments behind Ondo Finance, the token faced steady selling pressure. The CMF showed that capital flow has been outwards for most of November. The MFI agreed, and has sunk below 20 in recent days.

This showed seller dominance, something the price action confirms. The 1-day timeframe’s ONDO structure was firmly bearish, and has been since the second half of September.

The $0.5-$0.55 area was a long-term support zone from August to September 2024, but was breached and now acts as resistance.