Ondo Finance is making a big move in the on-chain Treasury space. The U.S.-based platform has purchased $25 million of YLDS, the yield-bearing stablecoin issued by Figure Technology Solutions, to strengthen the assets backing its tokenized U.S. Treasurys fund.
This step broadens Ondo’s on-chain Treasury reserves beyond traditional asset manager products.
Details About Detail
YLDS will now sit alongside tokenized Treasury offerings from heavyweights like BlackRock, Fidelity, Franklin Templeton, and WisdomTree. Ondo’s Short-Term U.S. Government Bond Fund, OUSG, provides institutional investors with 24/7 on-chain access to U.S. Treasurys.
The fund currently has about $777 million in total value locked and offers an estimated annual return of 3.68%, giving investors a way to combine stable yields with blockchain efficiency.
Figure, which operates on the Provenance blockchain, has originated over $19 billion in loans across home-equity lines, mortgage products, and crypto-backed credit.
The company also went public earlier this year via Nasdaq IPO. Its YLDS stablecoin, with a market cap of roughly $100 million, delivers yield while maintaining the stability and compliance needed for institutional adoption.
Ondo Finance has been aggressively expanding its tokenized asset lineup. In October, it launched on BNB Chain, adding over 100 tokenized stocks and ETFs on-chain. The platform also recently gained regulatory approval from the Liechtenstein Financial Market Authority to offer tokenized stocks in Europe, further solidifying its global presence. Following the YLDS investment announcement, Figure’s stock rose nearly 4% in early Monday trading.
The move comes amid growing interest in crypto-backed lending worldwide. In Australia, Block Earner rolled out Bitcoin-backed home loans allowing borrowers to access up to 50% of property value in cash. Meanwhile, Tether invested in Ledn, which originated over $390 million in Bitcoin-backed loans in Q3, and Coinbase launched Ether-backed loans letting U.S. users borrow up to $1 million in USDC against Ethereum holdings.
Conclusion
Ondo Finance’s $25 million YLDS purchase signals that tokenized Treasury and yield-bearing stablecoins are increasingly central to the intersection of traditional finance and crypto. Institutional investors are clearly ready to embrace blockchain infrastructure while maintaining access to familiar, low-risk assets.
