Ondo Finance Expands Tokenized Treasury on Solana, Boosts Real-World Assets

• Ondo Finance Amplifies US Treasury-backed Tokens in Solana Blockchain
• Ondo Finance's Expansion to Solana Ecosystem
• Recent Developments in the DeFi Ecosystem
• The Year of Tokenized Treasuries
• Nathan Allman on Solana Ecosystem

Ondo Finance Amplifies US Treasury-backed Tokens in Solana Blockchain

Ondo Finance is extending its U.S. Treasury-backed tokens to the Solana$104 5.03% blockchain, consequently enabling investors to utilize them as collateral in decentralized finance (DeFi). This recent development has been a significant contributor to this year's boom in real-world assets like bonds and credit, adapted to the blockchain.

Ondo Finance's Expansion to Solana Ecosystem

The tokenized real-world asset (RWA) provider, Ondo Finance, announced on Tuesday its decision to extend its U.S. Treasury-backed tokens to the Solana blockchain and its DeFi protocols, including Orca and Raydium.

Solana is the first layer 1 network, following Ethereum$2,315 -2.42%, that allows investors to access Ondo's yield-generating stablecoin alternative, U.S. Dollar Yield (USDY), and a tokenized edition of BlackRock's short-term Treasury bond exchange-traded fund named OUSG. Both USDY and OUSG are also accessible on the Ethereum layer 2 network Mantle and Polygon$0.967 -3.65% respectively.

Recent Developments in the DeFi Ecosystem

The expansion by Ondo Finance comes in the wake of Circle, the stablecoin issuer, launching its euro-backed stablecoin, EURC$1.10 -0.08%, within the Solana ecosystem.

Tokenized U.S. Treasuries have led the charge in this year's tokenization surge with crypto native firms and large banking institutions, including JPMorgan and Citigroup, competing to adapt more traditional assets, such as bonds and credit, to blockchain rails. This move aims to enhance efficient operations and reduce costs. As a result, competition among blockchain networks for real-world assets is intensifying.

The Year of Tokenized Treasuries

Tokenized treasuries offerings saw an exponential growth this year, with the combined market cap ballooning to over $760 million from a mere $110 million earlier in the year. Ondo Finance is the second largest issuer after traditional finance giant Franklin$0.0015 -3.24% Templeton, according to data by RWA.xyz.

This growth can be attributed to the significant increase in bond yields on traditional markets as the U.S. central bank upped interest rates, while yields in DeFi lending markets declined during the crypto winter.

Given the revived crypto markets and increasing DeFi activity, Ondo Finance anticipates users to use its tokens as cash in decentralized exchanges, collateral for lending, and as a medium for payments and settlements.

Nathan Allman on Solana Ecosystem

Nathan Allman, founder and CEO of Ondo Finance, acknowledged the resilience and growth potential of the Solana DeFi ecosystem, citing its innovative scaling and low transaction costs. He also noted that integrating Ondo's offerings with Solana not only supports their strategic growth but also paves the way for new decentralized finance applications leveraging tokenized US Treasuries, thus benefiting a wide range of developers and users.

Edited by Jonathan Stoker