Ondo Finance Raises the Bar for RWA Platforms, Hits $600M TVL

Ondo Finance has hit a significant milestone, surpassing $600 million in Total Value Locked (TVL) across its yield-bearing products. The platform now holds $384 million in USDY and $221 million in OUSG, solidifying its position as a leading issuer of tokenized treasuries. Ondo Finance shared the announcement in a recent post, celebrating this achievement as it continues to lead in the Real-World Asset (RWA) sector.

Celebrating a new milestone! Ondo Finance has surpassed $600M in Total Value Locked (TVL) across our yield-bearing products:

• USDY: $384M
• OUSG: $221M

We’re proud to be the first issuer of tokenized treasuries to achieve this milestone pic.twitter.com/BEGdkLW9o0

— Ondo Finance (@OndoFinance) September 3, 2024

Launched in January 2024, Ondo Finance has quickly become a major player in the Real World Assets (RWA) sector. With a current market cap approaching $1 billion, Ondo’s rapid ascent underscores its strong market position. While its primary focus is on institutions, individual investors can also trade on Ondo’s platform. However, they must complete a Know Your Customer (KYC) process, while firms need to go through a Know Your Business (KYB) procedure.

Ondo Finance offers two primary tokenized notes: USDY and OUSG. USDY is backed by short-term U.S. Treasuries and bank demand deposits, offering a 5.35% annual percentage yield (APY). OUSG, similarly backed by U.S. Treasuries, provides a 5.08% APY but is available only to qualified purchasers. The platform operates on business days only, in contrast to many 24/7 crypto exchanges.

In a notable accomplishment, Ondo recently moved $95 million in assets to BlackRock’s BUIDL fund, surpassing BlackRock in TVL for RWAs. Ondo’s TVL now stands at over $600 million, further cementing its position in the market.

Altcoin Buzz, a crypto news outlet, highlighted Ondo’s growth in a podcast. The platform’s valuation and market cap have increased significantly since its launch, despite the current market downturn. Ondo has a total supply of 10 billion tokens, with only 1.4 billion, or 14%, currently in circulation. The video also notes that Ondo has significant yearly token unlocks scheduled, a factor investors should consider.

Ondo’s main competitor, Mantra Chain (OM), is also a major force in the RWA sector. In contrast to Ondo, Mantra offers a wider variety of tokenized assets, including art, commodities, and real estate, which can be traded on its decentralized exchange (DEX). Mantra has also seen substantial growth, with its token price rising notably over the past year.

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