Ondo Finance Expands Real-World Asset Tokenization with Mastercard Partnership

• Ondo Finance and Mastercard’s partnership enables businesses to access tokenized treasuries, reducing settlement delays and stablecoin dependence.
• Mastercard’s MTN now links private payment systems with public blockchains, boosting efficiency in domestic and cross-border transactions.

Ondo Finance has joined forces with Mastercard in a move that could reshape how businesses handle tokenized assets. The partnership integrates Ondo’s Short-Term U.S. Government Treasuries Fund (OUSG) into Mastercard’s Multi-Token Network (MTN), allowing businesses to tap into tokenized treasuries without facing traditional settlement delays or reliance on stablecoins.

1/ @Mastercard is bringing Ondo Finance into the Multi Token Network (MTN) as the first RWA provider on the network.

The MTN enables banks to offer digital financial services to integrated businesses, and Ondo’s Short Term US Treasuries Fund (OUSG) will be the first tokenized… pic.twitter.com/LP7iuRo7A3

— Ondo Finance (@OndoFinance) February 26, 2025

With this development, Mastercard’s MTN now connects private payment systems with public blockchains, a groundbreaking step in streamlining domestic and international transactions. Ondo Finance will be the first provider of tokenized real-world assets (RWAs) on the MTN platform, positioning itself as a leader in the sector.

Ian De Bode, Chief Strategy Officer at Ondo Finance, emphasized the partnership’s impact. He highlighted how the connection between private payment networks and tokenized assets on public blockchains allows the banking sector to operate round the clock worldwide.

Tokenized Assets Surge Past $15B — Institutions Jump In

Institutional interest in tokenized assets is gaining momentum, with K33 Research reporting that the sector is now worth over $15 billion, excluding stablecoins. The push for greater efficiency, accessibility, and liquidity has accelerated adoption, with firms like BlackRock leading the charge. U.S. Treasury-backed tokenized assets alone have reached $4 billion, further cementing their role in modern finance.

Ondo’s integration with Mastercard bridges the gap between blockchain and traditional banking. Businesses can now access daily yield and manage cash flow flexibly, leveraging OUSG’s on-chain benefits. By streamlining transactions, Mastercard’s MTN is making it easier for companies to handle digital assets within a secure framework.

“This integration offers businesses a way to integrate tokenized treasuries into their operations effortlessly,” Ondo Finance stated in a social media announcement.

A Strategic Move for Mastercard and Ondo

By bringing OUSG onto MTN, Mastercard is reinforcing its commitment to digital asset adoption. The payment giant’s multi-token network allows banks to offer digital financial services with greater efficiency, making cross-border transactions faster and more seamless. Ondo Finance’s role as the first RWA provider on this platform highlights the increasing institutional confidence in tokenized finance.

The significance of this partnership extends beyond the immediate benefits of cash management. It sets the stage for the wider adoption of tokenized financial instruments in the broader banking ecosystem. The demand for tokenized treasuries is expected to grow as regulatory frameworks continue to evolve, providing more clarity for institutions looking to enter the space. Ondo noted:

With the addition of OUSG, MTN is breaking new ground by connecting a private payments network with tokenized assets on public blockchains for the very first time,