Wellington Management, an asset supervisor with over $1 trillion in belongings, has announced a partnership with Ondo Finance in a collaboration that goals to energy intraday redemptions for a newly unveiled tokenized US Treasury fund.
Ondo is a decentralized finance protocol that’s seeing fast development within the tokenized belongings market.
Ondo and Wellington group up on new tokenized fund
The fund in query is the Delta Wellington Ultra Short Treasury On-Chain Fund, or ULTRA, which Standard Chartered-backed tokenization platform Libeara launched in collaboration with fund administration infrastructure agency FundBridge Capital.
Delta Wellington Ultra Short Treasury On-Chain Fund is dwell on the Ethereum blockchain. However, the issuers have plans to broaden it to Arbitrum, Avalanche and Solana. The partnership between Wellington Management and Ondo Finance will see the latter provide the expertise that may allow intraday redemptions.
1/ Wellington Management Partners with Ondo Finance to Provide Intraday Redemptions for Tokenized US Treasury Fund
Wellington Management (@Wellington_Mgmt) one of many world’s largest unbiased asset managers with over $1 trillion in belongings, has partnered with Ondo Finance to… pic.twitter.com/dy1tefMxxM
— Ondo Finance (@OndoFinance) October 30, 2024
With this, buyers can enter and exit positions any time. Ondo and Wellington see this as an important step in direction of enhancing the fund’s utility throughout web3.
“By enabling 24/7 liquidity, Ondo Finance is ensuring that tokenized assets can be most effectively used as collateral and for cross-border settlement, including in the digital assets ecosystem,” Nathan Allman, chief govt officer of Ondo Finance, mentioned in a press release.
Ondo has Ondo U.S Dollar Yield (USDY) and Ondo Short Term US Government Bond Fund (OUSG), two of the highest tokenized US Treasuries funds.
According to rwa.xyz, USDY and OUSG have market caps of $444 million and $205 million respectively. However, that’s notable in a market at the moment at simply over $2.43 billion.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is the biggest at over $533 million.
