On Jan. 10, Ondo Finance, a decentralized finance (DeFi) firm launched a tokenized fund, allowing stablecoin holders to invest in U.S.
Treasuries and bonds. The three products offered by the firm, U.S Government Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB), and High Yield Corporate Bond Fund (OHYG) are short-term U.S Treasuries and bonds in popular ETFs managed by firms such as Blackrock and PIMCO.
The funds have annual percentage yields (APYs) of 4.62%, 5.45%, and 8.02% respectively, and Ondo Finance will charge an annual management fee of 0.15%.
The CEO of Ondo Finance said their goal was to make it easy for investors to convert between stablecoins and traditional assets and their products will be particularly beneficial for stablecoin holders, DAOs, and start-ups because it provides a bridge between low-risk on-chain yields and higher-yielding alternatives.
The firm raised $20M in Series A round led by Founders Fund and Pantera Capital in April 2022, and an additional $10 million through public token sales.