This strategic reallocation demonstrates the growing intersection between crypto protocols and institutional financial mechanisms.
It also underscores the innovative potential of blockchain technology in enhancing asset liquidity and accessibility. Let’s discover this important news for Blackrock.
Blending Crypto Innovation with Institutional Finance
Ondo’s OUSG token shift to BlackRock’s BUIDL fund moves away from less favorable short-term Treasury bond ETFs. This move is a pioneering example of crypto protocols leveraging traditional financial instruments in a tokenized format. The tokenized BUIDL fund aligns with the crypto market’s 24/7 nature, contrasting traditional stock market hours.
#RWA platform @OndoFinance plans to move $95 million of assets to BlackRock's tokenized fund to back its $OUSG token, aiming to boost redemption time, CEO @nathanlallman told CoinDesk. https://t.co/tkkQ6RZzHb
— CoinDesk (@CoinDesk) March 29, 2024
Previously tied to traditional market hours by backing from BlackRock’s ETF, the OUSG token faced limitations This was at odds with the crypto market’s 24/7 nature, leading to inefficiencies and a less optimal user experience for OUSG holders.
By integrating with BlackRock’s BUIDL tokenized fund, Ondo Finance aims to revolutionize the way its token operates. According to Ondo Finance’s CEO, the move to the tokenized fund will make the OUSG token “significantly more usable.” The key benefit being highlighted is the instant, around-the-clock subscriptions and redemptions, a stark departure from the previous model where transactions could only occur during specific hours, adhering to the traditional financial market’s schedule.
More About Ondo Finance & BlackRock
The move to instant settlements enables 24/7 subscription and redemption, removing the prior T+2-day wait. This could precede more crypto and finance platform integrations, as detailed in an Ondo blog post.
📢 OUSG will soon offer 24/7/365 subscriptions and redemptions via USDC and transition its backing predominantly into the newly launched @BlackRock USD Institutional Digital Liquidity Fund (BUIDL).https://t.co/qXmC3Y3adm
— Ondo Finance (@OndoFinance) March 27, 2024
Ondo’s move to BlackRock’s fund shows the blurring lines between digital and traditional finance. It underscores blockchain’s role in improving financial asset efficiency and accessibility, fostering sector innovation.
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