Senate Passes Tax Bill Boosting Defense Spending 51-49 Ondo Finance Pantera Capital Launch $250 Million RWA Fund Owlto Finance Develops Cross-Chain Stablecoin Infrastructure

The U.S. Senate has advanced a significant tax and spending bill, dubbed the “Big and Beautiful” tax bill, through a key procedural vote. The bill, which passed with a narrow margin of 51-49, aims to extend Trump-era tax cuts, introduce new deductions for items such as tips and auto loans, increase defense spending, and fund anti-immigration efforts. Lawmakers are working to finalize the bill before the July 4 holiday.

This legislative move is expected to have a short-term positive impact on markets, potentially boosting risk appetite in both equities and crypto markets. The extension of tax cuts and new deductions could enhance disposable income and corporate profit expectations, providing a temporary boost to market sentiment. However, the increased deficit resulting from the bill could raise concerns about inflation and lead to expectations of tighter monetary policy from the Federal Reserve. This, in turn, could introduce volatility in the medium term for assets like Bitcoin (BTC) and Ethereum (ETH).

In the realm of real-world asset (RWA) tokenization, Ondo Finance and Pantera Capital have announced the launch of a $250 million “Catalyst” fund. This fund is specifically designed to support tokenized RWA equity and token investments, signaling growing institutional confidence in the long-term growth of the RWA ecosystem. Ondo’s existing products, OUSG and USDY, already hold a combined $1.4 billion in tokenized U.S. Treasuries, and the company is also developing a dedicated Layer 1 network to enhance RWA liquidity and infrastructure.

The establishment of the Catalyst fund indicates a maturing RWA sector, where capital is now being allocated to foundational ecosystems rather than just individual products. This development could accelerate the tokenization of traditional assets and support the emergence of a comprehensive RWA economy. As RWAs serve as a bridge between decentralized finance (DeFi) and traditional finance, the influx of institutional capital into the on-chain space is likely to increase.

Meanwhile, Owlto Finance is developing a cross-chain stablecoin infrastructure centered around USD1, a stablecoin affiliated with Trump. The infrastructure aims to facilitate seamless USD1 transfers across different blockchain networks, offer staking-based yield opportunities, and position USD1 as a core settlement asset once the “GENIUS Act” is passed. This move reflects a broader trend in the stablecoin sector, where stablecoins are evolving from single-chain tools into multichain liquidity anchors. If successful, USD1 could become a preferred settlement layer in the cross-chain ecosystem, particularly if regulatory frameworks legitimize its usage. This development underscores the growing emphasis on compliance and interoperability within the stablecoin sector.