DeFi firm Ondo Finance launched a tokenized fund on Jan. 10 that allows stablecoin holders to invest in bonds and U.S. Treasuries.
The firm offered three products: the U.S. Government Bond Fund (OUSG), Short-Term Investment Grade Bond Fund (OSTB), and High Yield Corporate Bond Fund (OHYG). These products are short-term US treasuries and bonds in popular ETFs managed by firms like Blackrock and PIMCO.
OUSG offers an annual percentage yield (APY) of 4.62%, while OSTB provides a slightly higher APY of 5.45%. OHYG offers gains of 8.02% annually.
Meanwhile, Ondo Finance will charge a management fee of 0.15% annually.
CEO Nathan Allman said:
“One of our goals is to make it quick and easy for investors to convert back and forth between stablecoins and traditional assets, with an emphasis on highly liquid, low-risk products like short-term US Treasuries.”
Allman added that stablecoin holders, alongside DAOs and start-ups, will most likely benefit from his firm’s offering because it bridges the gap between low and risky on-chain yields with safer and higher-yielding alternatives.
Ondo raised $20M in a Series A round led by Peter Thiel’s Founders Fund and Pantera Capital in April 2022. The DeFi firm later raised an additional $10 million through public token sales in the same year.
