Mastercard Partners with Ondo Finance for Tokenized Treasuries

Mastercard has taken a significant step in the world of tokenized real-world assets (RWA) by bringing on Ondo Finance as their first partner within the Multi-Token Network (MTN). This network provides businesses access to regulated tokenized products, and Ondo kicks off with their Short-Term US Government Treasuries Fund (OUSG).

What does this mean?

Ondo Finance’s OUSG fund is based on BlackRock’s tokenized BUIDL fund, supplemented with a selection of low-risk US government bonds. Ondo has also collaborated with heavyweights such as Franklin Templeton, WisdomTree, Wellington Management, and Fundbridge Capital. This partnership allows businesses to gain direct access to these yield-bearing tokens via the MTN, without having to purchase crypto first.

24/7 flexibility and benefits

What makes this so interesting? Ondo offers tokens that yield returns, based on government bonds, with an onboarding process so simple that you don’t have to be a crypto expert. Companies affiliated with the MTN can benefit from a stable, conservative investment with the flexibility of 24/7 entry and exit. And all this without additional costs for stablecoins or complicated crypto transactions – you simply arrange it via traditional banking channels.

Mastercard’s MTN is a private blockchain that combines the speed and reliability of public networks with the ability to offer regulated products. This ensures that businesses can use tokenized treasuries with a low threshold and a high degree of control.

Growing market for tokenized treasuries

The market for tokenized US government bonds is booming. Currently, various tokenization startups already manage more than $3.9 billion of these assets, a significant jump compared to a year ago when the total value was still under $800 million. BlackRock’s BUIDL was one of the pioneers in this sector, and Ondo Finance is cleverly capitalizing on this by holding more than 34% of these tokens as collateral for their own products.

RWA’s under the microscope

Despite a recent dip in the total valuation of RWA tokens – from $37 billion to $34 billion, mainly due to the decline of Mantra (OM) – the RWA story continues to attract attention. ONDO, the token of Ondo Finance, is currently trading around $0.97 after a 19% drop in the past week. However, it remains a solid name in the RWA market, partly thanks to partnerships with giants like Trump’s World Liberty Financial and a recent addition to Binance’s cold wallet.

Future perspective

Although ONDO may be 60% below its peak, it is attracting investors who look beyond the quick meme hype. It may not offer explosive short-term gains, but it does offer stability and long-term potential due to its strong fundamentals and established partnerships. As the market continues to fluctuate, Ondo Finance, with this Mastercard partnership, seems well-positioned to become a key player in the growing world of tokenized assets.