Ondo Finance Joins Mastercard’s Multi-Token Network as First RWA Provider
Ondo Finance will be the first provider of tokenized real-world assets (RWAs) on Mastercard's Multi-Token Network (MTN). This integration allows businesses to access digital versions of US government bonds without using stablecoin onramps.
- Ondo’s Short-Term US Government Treasuries Fund (OUSG) will be incorporated into Mastercard's blockchain payment system.
- Businesses can earn daily yields on tokenized bonds with continuous accessibility.
- MTN connects banks and businesses, enhancing cross-border transactions and reducing settlement delays.
- OUSG can be held on public blockchains while payments settle through traditional banking systems.
- This eliminates the need for additional crypto wallets or specialized accounts.
Connection Between Traditional Banking and Blockchain
Ian De Bode, Ondo Finance's Chief Strategy Officer, stated that this partnership links private payment networks with tokenized assets, enabling 24/7 global banking operations. He noted:
“This partnership represents a landmark moment of connecting private payment network rails to tokenized assets on public blockchain networks.”
- MTN supports secure financial operations, including international settlements and asset-backed liquidity.
- OUSG could serve as collateral in business financing and treasury management globally.
- OUSG is designed for lower fees, instant transactions, and daily interest payouts.
- Most assets are held in the BlackRock USD Institutional Digital Liquidity Fund.
Raj Dhamodharan from Mastercard highlighted the potential of this collaboration to create new opportunities in the digital asset space:
“Our work with Ondo Finance is poised to open new doors in the ever-evolving digital assets ecosystem.”
Market Reaction to ONDO Token
Despite the partnership announcement, the ONDO token has dropped over 4.41% in the last 24 hours, possibly due to broader market trends. Trading volume decreased by more than 54% during the same period.