According to CoinDesk, Ondo Finance has expanded its U.S. Treasury-backed tokens to the Solana blockchain and ecosystem applications, allowing investors to use them as collateral and in decentralized finance (DeFi). Tokenized real-world asset (RWA) platform Ondo Finance announced the expansion of its U.S. Treasury-backed tokens to the Solana (SOL) blockchain and its DeFi protocols such as Orca and Raydium. Solana is the first layer 1 network after Ethereum where investors can access Ondo's yield-generating stablecoin alternative U.S. Dollar Yield (USDY) and a tokenized version of BlackRock's short-term Treasury bond exchange-traded fund named OUSG. USDY is also available on Ethereum layer 2 network Mantle and OUSG on Polygon.
Ondo's expansion follows stablecoin issuer Circle introducing its euro-backed stablecoin EURC to the Solana ecosystem. Tokenized U.S. Treasuries led this year's tokenization boom, with crypto native firms and big banks like JPMorgan and Citigroup racing to bring more traditional assets such as bonds and credit on blockchain rails for more efficient operations and lower costs. The competition also increases among blockchain networks to attract RWAs. The combined market cap of tokenized treasuries offerings grew to over $760 million from $110 million earlier this year, with Ondo being the second largest issuer after traditional finance giant Franklin Templeton, according to data by RWA.xyz. The growth was fueled by soaring bond yields on traditional markets as the U.S. central bank raised interest rates while yields in DeFi lending markets plummeted during the crypto winter.
With crypto markets rejuvenated and DeFi activity picking up, Ondo expects users to tap its tokens as a form of cash in decentralized exchanges, collateral for lending, and means for payments and settlements. Nathan Allman, founder and CEO of Ondo Finance, said in a statement, 'The Solana DeFi ecosystem has demonstrated great resilience and growth potential, thanks to its innovative scaling and low transaction costs. Integrating Ondo's offerings with Solana not only aligns with our strategic growth but also paves the way for novel decentralized finance applications leveraging tokenized US Treasuries, benefiting a wide array of developers and users.'
