KEY TAKEAWAYS
- PayPal USD (PYUSD) will soon be convertible with Ondo Short-Term US Government Treasuries (OUSG) 24/7, enhancing liquidity and utility.
- The collaboration between PayPal and Ondo Finance aims to facilitate seamless minting and redemption of OUSG using PYUSD.
- Ondo Finance is a pioneer in tokenizing real-world assets, surpassing $600 million in Total Value Locked in tokenized US Treasuries.
PayPal USD (PYUSD), a rapidly growing stablecoin, will soon be available for investors to convert in and out of Ondo Short-Term US Government Treasuries (OUSG) around the clock. This development was announced here by Ondo Finance, highlighting a significant step in enhancing liquidity and utility for both PYUSD and OUSG.
The collaboration between PayPal and Ondo Finance aims to facilitate seamless minting of OUSG using PYUSD, along with 24/7 instant redemptions of OUSG for PYUSD. This initiative is expected to improve the redemption liquidity of OUSG and expand the use of PYUSD as a liquidity source for real-world assets.
Enhancing Utility and Liquidity
Jose Fernandez da Ponte, Senior Vice President and General Manager of Blockchain, Crypto & Digital Currencies at PayPal, emphasized the enhanced utility of PYUSD in capital markets. He noted that Ondo Finance’s efforts illustrate the advantages PYUSD offers for fast and cost-effective settlements.
Nathan Allman, CEO of Ondo Finance, remarked on the benefits of allowing conversions between OUSG and PYUSD. He stated that this move enhances Ondo’s offerings by providing clients with reliable and high-quality settlement solutions, enabling them to maintain more assets onchain.
Ondo Finance’s Role in Tokenization
Ondo Finance is recognized for its pioneering role in the tokenization of real-world assets. It is the first platform to surpass the $600 million Total Value Locked (TVL) milestone in tokenized US Treasuries. OUSG, the first tokenized US Treasuries fund, offers qualified investors features such as instant 24/7 subscriptions and redemptions, daily interest accruals, low fees, and multi-chain availability, including Ethereum and Solana.
The majority of OUSG’s portfolio is held in the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), underscoring its commitment to providing high-quality yield from US Treasuries and similar instruments.
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