• Ondo Finance has launched three products designed to allow stablecoin holders globally to invest directly in bonds and U.S. Treasurys.
• These regulated products are expected to attract more than $100 billion in stablecoins that may not be earning yields for their holders.
• The funds deposited on Ondo will be invested in exchange-traded funds offered by BlackRock and Pimco, with Coinbase Custody and Coinbase Prime handling conversions between stablecoins and fiat.
Decentralized finance (DeFi) platform Ondo Finance has announced the launch of three new products that aim to provide stablecoin holders with an opportunity to invest directly in bonds and U.S. Treasurys. It is estimated that these regulated products could attract more than $100 billion in stablecoins that may not be earning yields for their holders.
The three products launched by Ondo Finance are the OUSG fund, the OSTB fund, and the OYHG fund. The OUSG fund is an investment in short-term government Treasurys, with an expected yield of 4.2% per annum. The OSTB fund is a short-term bond fund, with an expected yield of 5.45% per annum. Lastly, the OYHG fund is a high-yield corporate bond fund, with an expected yield of 8% per annum. All of these funds have a fee of 0.15% and are designed to allow investors to take advantage of the higher yields associated with bonds and Treasurys.
To ensure that investors’ funds are secure, Ondo Finance has partnered with Coinbase Custody, Coinbase Prime, BlackRock, and Pimco. Coinbase Custody will custody any stablecoins that the fund holds, while Coinbase Prime will handle the conversions between stablecoins and fiat. The funds deposited on Ondo will further be invested in relevant exchange-traded funds managed by BlackRock and Pimco.
With the launch of these three funds, Ondo Finance is aiming to provide a more secure and profitable option for stablecoin holders who are looking for higher yields than those offered by traditional savings accounts and money market accounts. Moreover, these funds are regulated and offer higher yields than other investment options such as stocks and bonds, making them an attractive option for investors.
For these funds to be successful, they need to be reliable and secure. Fortunately, Ondo Finance has taken the necessary steps to ensure that these funds are secure and reliable. This includes partnering with Coinbase Custody and Coinbase Prime, two of the most trusted names in the crypto industry. Additionally, the funds are managed by BlackRock and Pimco, two of the most respected investment firms in the world.
Overall, the launch of these three products is an important step forward in the evolution of DeFi, as it provides stablecoin holders with an opportunity to invest in bonds and U.S. Treasurys and earn higher yields than what is offered by traditional savings accounts and money market accounts. With the added security and reliability provided by Coinbase Custody and Coinbase Prime, and the expertise of BlackRock and Pimco, it is likely that these funds will be successful.