• Ondo Finance has announced the launch of a tokenized fund, allowing stablecoin holders to invest in US Treasuries and bonds.
• The company will offer three share classes: US Government Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB), and High Yield Corporate Bond Fund (OHYG).
• It will charge a 0.15% per annum management fee, which will be managed by Onto Capital Management.
Ondo Finance, a decentralized investment platform, has recently unveiled the launch of a tokenized fund, allowing stablecoin holders to invest in US Treasuries and bonds. With more than $100 billion of non-yield-bearing stablecoins in the market, this new fund will make traditional capital markets more accessible to investors.
The company will offer three share classes to provide a range of institutional-grade yielding offerings. The US Government Bond Fund (OUSG) will use the Blackrock US Treasuries ETF (SHV) to invest exclusively in short-term US treasuries. The Short-Term Investment Grade Bond Fund (OSTB) will utilize the PIMCO Enhanced Short Maturity Active ETF (MINT) to invest solely in short-term investment grade and corporate bonds. Lastly, the High Yield Corporate Bond Fund (OHYG) will use the Blackrock iBoxx $ High Yield Corporate Bond ETF (HYG) to invest in high-yield corporate bonds.
Onto Capital Management will take charge as an investment adviser, facilitating the purchase and sale of these ETFs. The firm will charge a 0.15% per annum management fee for its services.
Nathan Allman, who tweeted about the launch, noted that the company’s goal is to make it easier for investors to convert between stablecoins and traditional assets, emphasizing “highly liquid, low-risk products like short-term US Treasuries.” This new fund will enable investors to access a greater range of investment opportunities and hopefully see increased returns.