Ondo Finance Joins Mastercard Network for Tokenized Real-World Assets

Ondo Finance, a leading issuer of tokenized real-world assets (RWAs), has joined the Mastercard network, aiming to enhance cross-border payments and provide businesses with access to yield-generating tokenized assets. The collaboration will enable businesses to participate in the Ondo Finance ecosystem, which is built on the Multi-Token Network (MTN) developed by Mastercard.

The Short-Term U.S. Government Treasuries Fund (OUSG) investment product offered by Ondo Finance will be available to businesses on the Mastercard MTN. This will provide them with access to yield via tokenized assets, as announced in a recent statement. The OUSG fund primarily invests in BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), the largest blockchain-based money market fund, which is backed by short-term U.S. government bonds.

Mastercard's MTN incorporates API-enabled blockchain tools, allowing banks to streamline domestic and cross-border transactions more efficiently. By integrating blockchain technology into its network, Mastercard enables other financial institutions and corporates to access cryptocurrency and other digital assets without the need to set up additional crypto infrastructure or accounts.

The partnership between Ondo Finance and Mastercard signifies a significant step towards the integration of traditional finance (TradFi) and decentralized finance (DeFi) ecosystems. This collaboration opens up new opportunities for businesses to participate in the growing DeFi market, while leveraging the established infrastructure and security provided by Mastercard.