Real-World Asset (RWA) Platform Moves $95 Million to BlackRock

Ondo Finance announced the transfer of $95 million to BlackRock’s newly launched tokenized fund, BUIDL. This is the first instance of a crypto protocol utilizing a tokenized fund for its offerings.

The initiative aims to facilitate instant settlements for Ondo’s US Treasury-backed token, OUSG, enhancing its appeal and utility within the crypto market.

Ondo Finance Leverages BlackRock’s Fund to Boost T-Bill Token Speed

Nathan Allman, CEO of Ondo Finance, said the shift to BlackRock’s BUIDL will significantly expedite the subscription and redemption process for OUSG. Therefore, it will transition from the traditional trade date plus two days settlement to instantaneous transactions.

This development comes as a response to investor concerns over the lengthy redemption times previously associated with OUSG. This was at odds with the crypto market’s 24/7 operational nature.

The transition has been underway, with Ondo already shifting $15 million of OUSG backing assets to BUIDL. Additionally, $80 million is expected to be moved soon. Blockchain data corroborated this movement, with a significant minting of $79.3 million in BUIDL tokens noted.

“We’re excited to see BlackRock embracing securities tokenization with the launch of BUIDL, especially its broad cooperation with ecosystem participants. Not only does this further validate our original concept of a tokenized US Treasury fund, but it also bolsters our thesis that tokenization of traditional securities on public blockchains represents the next major step in the evolution of financial markets,” the Ondo Finance Team said.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

BlackRock’s BUIDL fund is represented by the Ethereum-based token and backed by US Treasury bills and repo agreements. It is designed for white-listed institutional clients, demanding a minimum $5 million investment.

Although this restricts smaller investors from direct participation, it enables platforms like Ondo Finance to leverage the fund for their retail offerings, bridging the gap between traditional finance and the cryptocurrency market.