Ondo Finance Invests $25M in Figure Stablecoin
RWA Signal Insight
StablecoinsOndo Finance has allocated $25 million into YLDS, a yield-bearing stablecoin issued by Figure Technology Solutions, to diversify the backing of its tokenized U.S. Treasury fund. This move marks a strategic shift for Ondo, moving beyond traditional asset manager products to incorporate on-chain stablecoin assets. Figure, which operates on the Provenance blockchain, has originated over $19 billion in loans, including home-equity and mortgage products. This integration highlights the growing trend of institutional-grade protocols utilizing on-chain assets to enhance liquidity and yield generation. Simultaneously, Ondo has expanded its reach by launching tokenized stocks on the BNB Chain and securing regulatory approval from the Liechtenstein Financial Market Authority. These developments underscore the increasing convergence between traditional financial infrastructure and decentralized finance. The broader market is seeing a surge in crypto-collateralized lending, with major players like Tether, Ledn, and Coinbase also expanding their respective loan offerings.
Key points
- Ondo Finance invested $25 million in Figure's YLDS stablecoin for Treasury fund diversification.
- Figure Technology Solutions has originated over $19 billion in loans on the Provenance blockchain.
- Ondo expanded tokenized stock offerings to BNB Chain and received Liechtenstein regulatory approval.
- Major firms including Tether, Ledn, and Coinbase are scaling crypto-collateralized lending products.
Background
Ondo Finance is a platform founded in 2021 that specializes in tokenizing traditional financial assets, such as U.S. Treasuries, to make them accessible on-chain. Figure Technology Solutions provides capital-markets infrastructure and lending services, leveraging the Provenance blockchain to facilitate transparent, on-chain financial transactions.